U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 12-18-2008, 07:55 AM
 
Location: Castle Hills
1,133 posts, read 2,381,744 times
Reputation: 611

Advertisements

It appears these rates may go down even lower by January. I'm currently at 5.5% on a 30 year fixed. I just bought my house in October but am thinking if the rates get down to around 4.25% it may be a good idea to refinance.

The house is worth 360k, our mortgage is 280k and we have 800 credit scores. Our note is 1600 a month but we pay 2500 right now to knock down the principle. We just feel we would be safer with a lower note in case one of us ever lost our jobs etc.

What does everyone think? Any opinions would be appreciated.
Reply With Quote Quick reply to this message

 
Old 12-18-2008, 08:38 AM
 
3,853 posts, read 11,862,236 times
Reputation: 2521
yea good idea. Lock in those low, low, low rates while you can. This is the lowest we've had interest rates in, well, ever! lol. Just make sure you don't get sucked into, "lowering the payment" or taking out equity etc.
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 08:45 AM
 
Location: Visitation between Wal-Mart & Home Depot
8,308 posts, read 35,277,908 times
Reputation: 7116
If you can refinance at 4.5% it's probably worth it. That would equate to a monthly reduction of about $170. Assuming closing costs of about $2000, that would payout in about 1 year and you would save about $60,000 in interest over the life of the loan.

Makes sense to me, but I'm no expert.

Here's a fun mortgage/amortization calculator to play around with... http://www.jeacle.ie/mortgage/

Some banks have been offering reduced rates (not as LOW LOW as 4.5%, more like 5% to 5.5%) for no closing costs so that they can keep the interest over the life of the mortgage rather than sell just the principal to a 3rd party lender. If you don't plan on ever owning the house outright or think you may be moving in a few years time, this probably makes more sense than paying closing costs.
Reply With Quote Quick reply to this message
 
Old 12-18-2008, 09:45 AM
 
Location: Castle Hills
1,133 posts, read 2,381,744 times
Reputation: 611
Thanks guys... all good responses. I guess the key would be to get the lowest possible rate and pay the least amount for them to do the refinance.

Jim,
Thanks for the calculator too. Very helpful.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 12:13 PM.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top