Time to refinance your mortgage?

1. 64

   Ralph Deedsposted 14 years ago

   I just refinanced my home mortgage today--4% for 15 years. Closing costs around $1,900. This is the lowest interest rate in 50 or so years.

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2. 60

   Pro Design Sourceposted 14 years ago

   That is great news. I hope more people are able to take advantage of these low interest rates. Unfortunately I think most are stuck because of appraisal values.

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3. 0

   shazwellynposted 14 years ago

   Unless you have trackers.. hehehe #smug wink#

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4. 61

   ediggityposted 14 years ago

   Wow, nice pull. Assuming it's a fixed rate with no points that's an awesome deal.

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   1. 64

      Ralph Deedsposted 13 years agoin reply to this

      Yes. Fixed rate no points. Fifteen years. The appraisal value was significantly above the mortgage amount. We bought the house in 1972 and took out equity when we had three kids in college or we would have burned the mortgage long ago.

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5. 60

   Pro Design Sourceposted 14 years ago

   shazzy -

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6. 88

   Stacie Lposted 13 years ago

   I considered refinancing a 15year at 4.3% last year but the house was on the market and thought it would sell.
   one needs to consider whether they can pay more per month by going to a 15year,if they already are paying for the remainder of a 30 year mortgage
   it would have increased my payments by $50 a month  but i think this helps the bank more than me.
   I guess it depends on each ones situation.

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7. 0

   Onusonusposted 13 years ago

   the other day I knocked 10 years off the mortgage and saved myself $$140,000$$, then I danced a jig.

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8. 51

   ocbillposted 13 years ago

   glad to hear that. Because more people will attempt to do the same, save some on their monthly payment and spend more in our economy.

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9. 64

   Ralph Deedsposted 13 years ago

   It appears that I jumped the gun on refinancing my mortgage at 4% last month. Looks like rates are going lower thanks to Federal Reserve actions announced yesterday.
   
   http://www.nytimes.com/2010/10/16/busin … ed.html?hp
   
   "For most Americans, additional Fed activity is likely to mean that already low 30-year mortgage rates will fall even further. The moves would not help savers, as yields on certificates of deposit and savings bonds would probably also fall."

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   1. 61

      hudlifeposted 13 years agoin reply to this

      4% is still a great rate! I wouldn't beat yourself up over it.
      
      Also, nice work getting that rate without paying any points.

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10. 74

    Mighty Momposted 13 years ago

    Congratulations, Ralph!
    That is exactly what I would LOVE to do.
    But... although not as underwater as some in our region, our appraisal value is not a heck of a lot higher than what we owe on the mortgage.
    I have tried talking to our lender and here is what they tell me:
    You don't have enough INCOME to refinance.
    Oh really?
    So, are you telling me that I have enough INCOME to continue to pay the mortgage I took out in 2007 but not enough to pay oh, say $500 to $1000 LESS per MONTH?
    Does this make any sense?
    
    Unforunately we have not missed or been late on a single payment. So we're not in trouble. Just screwed by a monthly payment that was doable in 2007 but almost 4 years later is a stretch.
    
    Anyone had any luck going through HUD?

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11. 51

    davidmiller25640posted 13 years ago

    Thanks for giving a nice suggestion. A fixed rate mortgage (FRM) is a mortgage loan first developed by the Federal Housing Administration (FHA) where the interest rate on the note remains the same through the term of the loan, as opposed to loans where the interest rate may adjust or "float." Other forms of mortgage loan include interest only mortgage, graduated payment mortgage, variable rate (including adjustable rate mortgages and tracker mortgages) , negative amortization mortgage, and balloon payment mortgage. Please note that each of the loan types above except for a straight adjustable rate mortgage can have a period of the loan for which a fixed rate may apply. A Balloon Payment mortgage, for example, can have a fixed rate for the term of the loan followed by the ending balloon payment. Terminology may differ from country to country: loans for which the rate is fixed for less than the life of the loan may be called hybrid adjustable rate mortgages (in the United States).
    This payment amount is independent of the additional costs on a home sometimes handled in escrow, such as property taxes and property insurance. Consequently, payments made by the borrower may change over time with the changing escrow amount, but the payments handling the principal and interest on the loan will remain the same.
    Fixed rate mortgages are characterized by their interest rate (including compounding frequency, amount of loan, and term of the mortgage). With these three values, the calculation of the monthly payment can then be done.
    Fixed Rate Mortgages

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12. 96

    wildernessposted 13 years ago

    My bank is offering a 4.5% 15 year re-finance I'm considering.  They say (I haven't seen any paperwork) the bank pays all closing costs.  With only 6 years left on the current 5.875% mortgage this might be the best option for me.  I would intend to continue paying my current payment although the new mortgage would lower the minimum payment considerably (might be advantageous in I suffer another layoff).
    
    I could probably get a lower interest, but with closing costs.  I doubt that any lower interest would result in much, if any, savings over the few years I have left.

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13. 55

    ftclickposted 13 years ago

    once economy gets better the rates will rise. track stock market for hints. There are a few companies doing no closing costs loans with rates being similar to what you'd get at banks.

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