ShouldI/When to refinance mortgage

[Thegame14]

we are about 8 years into a 30 year fixed mortgage, at 4.25%, I saw another poster saying they can get 3.875%, we also have a HELOC variable around 4.99%. We owe about $270K on mortgage and about 30K on HELOC. When would it make sense to refinance and also in the process I assume wiping out the HELOC makes sense as well.

The house is valued around $475K. We both have 800 credit scores and income is around $150K

[Quirkz]

Some broad rules of thumb include:
* if you can reduce by half a point or more
* if the refi savings pay for the costs within x (6-12? 18? sorry, I forget) months

Looking at numbers, it seems like you'd save close to half a point on the main loan and more than that on the HELOC. I'd bet it would be worth it. Definitely doesn't hurt to run some numbers.

I probably would roll the HELOC in, but since you're already 8 years into the loan I'd also encourage you to look at a 20-year loan, in order to maintain close to the existing payoff date and avoid extending it by another 8 years.

[Thegame14]

Didn't know that they had 20 year loan, thought it was 30 or 15 years, thanks good to know. I will have to call B of A and ask.

[KATNYC]

We refinanced at 3.375% in 2017. We had an adjustable rate HELOC for renovations that kept increasing so it was worth it to us. We have a 10/ARM that will be paid off in 9.5 years.

[aerosurfer]

Didn't know that they had 20 year loan, thought it was 30 or 15 years, thanks good to know. I will have to call B of A and ask.

Dont feel the need to stay with your current bank or lender. Shop around, there are a likely better terms with other mortgage locations.

FWIW, I used Aimloan.com. they are a direct lender, had the best rates by far at the time, and delivered without any games, delays or bait and switch.

They offered many different loan types