Should I refinance house?

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Topic Author
hbdad
Posts: 141
Joined: Fri Dec 13, 2019 3:29 pm

Should I refinance house?

Post by hbdad »

Hi all,

Sorry if this is a stupid question. I think I know the answer but want to double check. I purchased my house in May 2018. Loan was at 4.25 (30yr). Last June, I refinanced at 3.75 (no cost refi, 30yr). Doing this refi saved me approx. $235 a month. Now, the same broker I used to refi is offering me another 30 yr no cost refi at 3.25 savings would be approx $160 a month. I don't plan to be in this house for more than 5 years. In fact, actively looking for other homes, but odds of moving this year are slim. Thanks.

Also, I have no PMI. I can deduct the mortgage interest. Tax rate is 22%. I don't want to go with an ARM in the event I stay here longer than I plan or turn into a rental.
gougou
Posts: 347
Joined: Thu Sep 28, 2017 7:42 pm

Re: Should I refinance house?

Post by gougou »

Yes, because it's a no cost refi and you save 0.5% on interest. If you move a year later you'll save about $2000.
User avatar
F150HD
Posts: 3424
Joined: Fri Sep 18, 2015 7:49 pm

Re: Should I refinance house?

Post by F150HD »

"no cost refi" - so who pays for the appraisal? who pays to have the paperwork processed? the title company is working for free?

Also, they seem to be extending the mortgage 12 months each time you do this adding 12 payments each time. How is that 'free'?
Topic Author
hbdad
Posts: 141
Joined: Fri Dec 13, 2019 3:29 pm

Re: Should I refinance house?

Post by hbdad »

F150HD wrote: Mon Jan 27, 2020 7:42 pm "no cost refi" - so who pays for the appraisal? who pays to have the paperwork processed? the title company is working for free?

Also, they seem to be extending the mortgage 12 months each time you do this adding 12 payments each time. How is that 'free'?
So do you have an answer?
kd2008
Posts: 711
Joined: Sun Feb 15, 2009 6:19 pm

Re: Should I refinance house?

Post by kd2008 »

OP, you should refi. Instead of focusing just on numbers see it as putting yourself in a better position no matter what the future brings.

I sent you a PM requesting info on the broker.

Thanks
Topic Author
hbdad
Posts: 141
Joined: Fri Dec 13, 2019 3:29 pm

Re: Should I refinance house?

Post by hbdad »

kd2008 wrote: Mon Jan 27, 2020 8:26 pm OP, you should refi. Instead of focusing just on numbers see it as putting yourself in a better position no matter what the future brings.

I sent you a PM requesting info on the broker.

Thanks
Thank you. I replied.
WildCat48
Posts: 62
Joined: Sun Jul 16, 2017 8:28 pm

Re: Should I refinance house?

Post by WildCat48 »

If you like money, I would refi.
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