has anyone done it? we've owned our condo for a year now, we locked in at 5% . Our mortgage broker just emailed us with a 4.25% rate. How does refinancing work? anyone done it before?
AwaitingAugust
Posted:
Member since
Re: refinancing
i almost did it last year on my co-op but decided against it in the end.
Honestly, if you're at 5% (as long as it's not an adjustable rate mortgage), i don't think it's worth it to refi at 4.25% unless you're planning on living there for quite a while (5 or more years) since you will need to pay about $3k in closing fees, not to mention pay for an inspection (which is a few hundred).
Linzee636
Posted:
Member since
Re: refinancing
Posted by AwaitingAugust
i almost did it last year on my co-op but decided against it in the end.
Honestly, if you're at 5% (as long as it's not an adjustable rate mortgage), i don't think it's worth it to refi at 4.25% unless you're planning on living there for quite a while (5 or more years) since you will need to pay about $3k in closing fees, not to mention pay for an inspection (which is a few hundred).
This... it really depends on if paying the fees now to refinance will pay off in the long run.
GR2010
Posted:
Member since
Re: refinancing
You would have to come up with the closing costs again so you have to figure how long you'll be there vs how much the lower percentage will save you over that time period.
Oct2010Bride2Be
Posted:
Member since
Re: refinancing
I do refinance closings as my part time job, feel free to FM me with any questions.
I agree that its not worth it to refiance if you are only shaving off 3/4 of a point. The general rule of thumb is - refinance if you are going to get AT LEAST a 1 point decrease (going from 6.25% to 5.25%), you aren't going to pay points for that rate, and you plan to be in your home for at least another 10-20 years. Closing costs for co-op and condo closings average anywhere from $5 to $6,000 to $ 12,000.
latinaj
Posted:
Member since
Re: refinancing
thx guys
JenBill61210
Posted:
Member since
Re: refinancing
we locked in at 5% in may right before the rates went down and were told it doesn't pay to refinance. i know it stinks to think though how low they are and how much u would be saving per month!
