I bought my house last july with a 6% interest rate. With all the talk of refinancing I'm just wondering if its worth it or not, I don't plan on being in the house forever, maybe just the next 5 yrs. I used a refinancing calculator and it said I'd be saving around 73 dollars a month with a rate at 4.75 and that just doesn't seem worth it when u add in the closing clost and things.
worth it to refinance?
- Thread starter bolinger06
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I wouldn't do it if your not in for the long run. It will look better for you to keep the loan longer and make payments ontime. Then when its time to sell and buy again, get the better rate.
You haven't had the house even a year yet. I doubt any banks would refi that new a morgage anyway.
You haven't had the house even a year yet. I doubt any banks would refi that new a morgage anyway.
Do the math. If the payback is short, then why not? :shrug:
I'd check with your Mortgage agent before following one of those calculators. Unless your mortgage is very low $75 does not seem like much. The 2 refi's I went through cost approximately $3,500 so it would take a long time to get your money back.
The key is to figure out how long it would take to recoup the closing costs. Also depends on how long you plan to stay in the house. If you are going to stay there a long time and/or recoup closing costs quickly it might be a good idea.
I'm only gonna be there for the next 5 or so years, whenever the market decides to rebound, I bought it for 93000 as a foreclosure so its an investment but I don't think it would be worth it unless I could save 150 plus a month or something along those lines
If its an investment then you wouldn't have to refi to afford it. If you refi and save 100 a month for 5 years...
Thats $6000. Til you take out closing closes +-3500. You only saved $2500. $2500 over 5 years is like $40 a month. BAD INVESTMENT. Keep it where it is, build some equity, sell it when you are ready to upgrade.
Something to think about, $150 a month seems like a lot but it isn't. I guarentee if you look at your bank statement, you can save a shit ton. I knocked out over $100 a month alone by just getting a coffee maker and not going to Dunken Doughnuts everyday. Just my 2 cents.
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