Mortgage Refinance

[Fingolfin269]

It will soon be two years since I made my first home purchase on a condo. My credit is now better than ever and I'm wondering at what point is the best time to try to lock in a lower interest rate. I don't intend to stay here forever but if it would be possible to cut my rate it may make it easier to go from a 30yr-fixed to a 15yr-fixed. I'm right at 5.25%-5.4% or so right now (can't remember the exact) and I do remember I had to pay some amount of points.

Any advice or reference to good advice would be appreciated!

 

[FoBoT]

30 yr fixed are around 6% , so i don't think you want that
maybe your deal is already good

 

[Demon-Xanth]

It sounds like you already have an awesome rate, I doubt you could do much better than you have now. If you want a shorter term, just start dropping some cash on the principle

 

[Fingolfin269]

Originally posted by: FoBoT
30 yr fixed are around 6% , so i don't think you want that
maybe your deal is already good

I ended up shaving interest points by getting one of the first time buyer loans. FHA/THDA or something along those lines, so I was hoping I would be able to get an even better rate by converting into a 15-yr fixed. I have better credit now and make more money. Win/win for the banks, right?

 

[mugs]

Your interest rate is 5.25-5.4% and you think refinancing now will be beneficial?

 

[Capt Caveman]

A month would have been a good time but rates have risen over 50 basis points since.

 

[Fingolfin269]

Originally posted by: mugs
Your interest rate is 5.25-5.4% and you think refinancing now will be beneficial?

If I had any idea what was going on do you think I would even ask?

Apparently I'm in a good position. My main goal was more to refinance in such a way to get a 15-yr fixed and I thought a lower rate might come along with doing so. If the best option is to just keep plowing the principal each month then I'll go that direction instead.

 

[Mermaidman]

Cost of refinancing would take a few years to recoup, so if you're going to sell the condo in less than 4-5 years, you should not refinance given your current favorable loan. Just pay extra principal every month. The 30-yr loan gives you the flexibility to pay much more than the minimum without binding you to a higher payment.

 

[Capt Caveman]

Originally posted by: Fingolfin269

Originally posted by: mugs
Your interest rate is 5.25-5.4% and you think refinancing now will be beneficial?

If I had any idea what was going on do you think I would even ask?

Apparently I'm in a good position. My main goal was more to refinance in such a way to get a 15-yr fixed and I thought a lower rate might come along with doing so. If the best option is to just keep plowing the principal each month then I'll go that direction instead.

You may be in a better financial position but current rates more than likely don't make refinancing a good option.

 

[Vic]

Originally posted by: Fingolfin269

Originally posted by: FoBoT
30 yr fixed are around 6% , so i don't think you want that
maybe your deal is already good

I ended up shaving interest points by getting one of the first time buyer loans. FHA/THDA or something along those lines, so I was hoping I would be able to get an even better rate by converting into a 15-yr fixed. I have better credit now and make more money. Win/win for the banks, right?

FYI: your FHA state bond mortgage is subject to a federal recapture tax of the mortgage interest subsidy if you sell the home within the first 9 years.

 

[Blieb]

Just pre-pay it on a 15 year schedule ... your rate beats the 15 yr rates right now.

 

[mrCide]

I came in here thinking you were in my situation. I have a 30 year at 6.625% and I want to refinance. I'd shave 100-120 off my monthly but it would take 4 years to "make it worth it". question is, will I be here in 4 years? I think the rate drops almost a %.