Bankers/Mortgage People

BNBride60 Posted: Jan 23, 2008 03:02 PM

Bankers/Mortgage People

I have a questionnnnn...

FH and I once had a glorious little adjustable rate mortgage. Then the rates shot up and I, who have a bit of knowledge about economics, refinanced for a fixed rate to secure us from a forever escalating payment. The Fed just cut the interest rates yesterday, and I checked with my bank and that means we could re-fi again for a 30 year fixed at 1% less than our current rate.

My question is - is it worth it to re-fi over 1%? And, do you anticipate the rates dropping again (aka recommend waiting a bit longer to re-fi)?

truelove5803 Posted: Jan 23, 2008 03:17 PM

Re: Bankers/Mortgage People

I work at Suffolk Federal Credit Union. On our website www.suffolkfcu.org we have a calculator that will tell you exactly what you are asking. Go to the website...at the top of the page click on online services...calculators...mortgage calculators...refinance. Fill in all the info and it will tell you what the deal with everything is. HTH

cmjd Posted: Jan 23, 2008 03:19 PM

Re: Bankers/Mortgage People

It all depends on how long you plan on staying in the house. WHat i mean is, you will have to have closing costs again, so if you are saving enough monthly to recoupe your closing costs say after 4 years, then, if you plan on stayign for 6 years - its worth it! You have to run the numbers based on your individual situation. I do this for a living and for some of my clients, even saving 1% doesnt make sense.

cmjd Posted: Jan 23, 2008 03:20 PM

Re: Bankers/Mortgage People

You really need to compare monthly savings to your closing costs. THe closing costs will be discounted but it will still raise the amount of money you owe on your loan.