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mortgage question - is it worth refinancing?

K

kt

Diamond Member
It's that time again, all my friends are talking about refinancing because the interest rate has been dropping. I refinance my mortgage back in November... barely on my 4th payment on the new 6%/30yr loan. I am unsure what the rate is at right now (a friend said it was at 5.5%, but she's an unreliable source), but at what rate would it be worth it for me to refinance again? I recall someone on here is a mortgage broker, any input or advice?
 
If you can do a streamline refi with no costs then go for it. How much do you owe now? That will play a large part in determining what kinds of costs would make or break a deal.
 
if you can get a no points/no cost refinance at a lower pecent than you currently have, then you just have to decide if its worth the paperwork/hassle or not , any difference in interest rate will benefit you if you don't pay any $ on the deal

 
A .5% difference isn't worth the hassle IMHO. If you can get a deal where nothing is added to your loan amount or you don't have to pay any closing costs, it may be worth it.
 
When you refinance often you have to pay closing costs of the old mortgage which is thousands of dollars which would not be worth it for 0.5%. However, if you are on a 30yr load and your interest is 8 or 9% then it would definately be worth it. Note: You don't always have to pay closing costs on the old mortgage or do you?
 
Oh, if you only plan on staying in the house for a few years (5,7,10) it may be worth it to check into an ARM mortgage. You could get an interest rate that is a full percentage point or more less than what you are paying now.
 
At this point, I doubt that it would be worth the hassle of shopping around.
Rate is NOT everything. Unless you're interested in reducing your term or have some other need in refinancing, I would suggest that you stay put and feel comfortable that you already have an excellent rate.
 
Thanks for all the inputs. I have no problem going thru the hassle/paperwork if it will save me some money every month. Besides, isn't all the paperwork handled by the mortgage broker? I only remember having to go into the office and sign a stack of papers when the loan was finalized. When I last refinanced, I made sure that there was no pre-pay penalty. Also, I am only interested in a no point/no fee refinance. The only reason I want to refinance is to lower the monthly payment, I don't have any other need for it besides that.

Using ViperGTS' link to the calculator, this is how much I would save with a 5.75% interest rate vs. my current:
$41/month

5.5%:
$80/month
 
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