Has anyone ever refinanced a mortgage? I'm just looking for any opinions as to whether it's worth it or not. It seems like we'd end up paying a huge closing cost again just to lower our monthly payment by about $200. It's so confusing! Any advice would be appreciated!
lucamon
Posted:
Member since
Re: Homeowners, any advice about refinancing???
I heard that it's not worth refinancing unless if the mortage rate that you're getting is at least 1% lower than what you're paying now. We refinanced last year because we wanted a 30 yr fixed mortgage and paid almost 10K in refinancing fee. It didn't lower our monthly payment much because we actually took money out for the wedding.
lucky1010
Posted:
Member since
Re: Homeowners, any advice about refinancing???
If the rate is 1% lower then its worth it, otherwise you will be losing money because of the closing fees you pretty much have to pay all over again..
Also, look into a bit further because some mortgages don't let you refinance before a certain amount of time.
GraceAndAdam
Posted:
Member since
Re: Homeowners, any advice about refinancing???
thanks for the advice! The rate would be more than 1% lower, but the closing fees would be around $12,000, which would be added on to the principal that we owe on the house. So basically I feel like even though our monthly payment would go down, our total payoff amount would jump up again to where it was when we first got the house. I feel like it's taking forever to chip away at what we owe on the house since so much of our monthly payments go towards interest instead of principal. So I'm really hesitant to have that amount go up by 12,000!
