re: Should I refinance?

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Topic Author
J6shin
Posts: 14
Joined: Tue Mar 31, 2020 10:24 pm

re: Should I refinance?

Post by J6shin »

I had a general question about refinancing.

Currently, I have a 509,400 loan for a $625,000 property that I refinanced at 3.25% for a 30 year conventional which started in end of March 2020 and will mature in M<arch 2050. I don't plan on staying in this home longer than 15 years at most, especially if we have another child.

With interest rates so low, when would it be worth it for me to refinance if my income is stable and I want to keep my payments about the same?

Monthly P&I= $2,221.29
Escrow- $702.98

I refinanced with LenderFi at no costs back in March, and I believe there is a 6 month waiting period, but I just want to know if an opportunity arises, if it makes sense to do a refi at 25 years at a lower rate?
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retired@50
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Location: Living in the U.S.A.

Re: re: Should I refinance?

Post by retired@50 »

The answer depends on what the new interest rate would be after re-financing?

The larger the difference in interest, the quicker the payback. Also, don't forget to add in any re-financing costs, should they be required.

Regards,
This is one person's opinion. Nothing more.
dandinsac
Posts: 209
Joined: Sat Jul 30, 2016 8:34 am

Re: re: Should I refinance?

Post by dandinsac »

I was 7 years into a 30-year mortgage when I refinanced from 3.75% to a 20-year mortgage @3.25% with no costs. My payment went up by about $50/month and the term was shortened by about 3 years. I will look for another no cost refinance with at least a 0.5% drop to consider another before I refinance again.

You’ll have to do the numbers, even with a 0.5% reduction, I think it would be a few years before you could get a 25-year mortgage with approximately the same payment. It would be easier to refinance for 30-years and then add an additional amount to keep it the same.
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anon_investor
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Re: re: Should I refinance?

Post by anon_investor »

J6shin wrote: Fri May 29, 2020 1:49 pm I had a general question about refinancing.

Currently, I have a 509,400 loan for a $625,000 property that I refinanced at 3.25% for a 30 year conventional which started in end of March 2020 and will mature in M<arch 2050. I don't plan on staying in this home longer than 15 years at most, especially if we have another child.

With interest rates so low, when would it be worth it for me to refinance if my income is stable and I want to keep my payments about the same?

Monthly P&I= $2,221.29
Escrow- $702.98

I refinanced with LenderFi at no costs back in March, and I believe there is a 6 month waiting period, but I just want to know if an opportunity arises, if it makes sense to do a refi at 25 years at a lower rate?
Once you are able to refi again (sounds like you have a 6 month clawback period), it might be worth it if you can get a lower rate at no cost (or even a net credit), meaning the only money you have to pay goes towards any prepaids/escrow.
Topic Author
J6shin
Posts: 14
Joined: Tue Mar 31, 2020 10:24 pm

Re: re: Should I refinance?

Post by J6shin »

Thanks! I think once my clawback period ends and depending on the rates, I will look for something in the 25 year range if it’s feasible or do the 30 year and just pay more each month toward the principal
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