Time to Refinance Your Mortgage?

Time to Refinance Your Mortgage?

If you’re in a position to refinance your mortgage and haven’t done so already, now’s a great time to lock in a very low rate. And even if you have refinanced, it might make sense to refinance again.

You’ve likely heard about the “historically low” mortgage rates over the past few years, but 15-year fixed rate mortgages dipped to an all-time low of 3.50% last week. And for their part, 30-year fixed rate mortgages averaged 4.32% last week, which is nearly an all-time low, and the lowest rate in the past nine months.

With rates this low, there’s a pretty good chance that you could score a “no-cost” refinance – wherein you accept a slightly higher than market rate in return for the lender covering your closing costs – and still come out way ahead.

In fact, these rates are so low that I almost wish we had a mortgage to refinance. Almost. 😉

Source: USA Today

9 Responses to “Time to Refinance Your Mortgage?”

  1. Anonymous

    Twenty five percent space of the town is under the green cowl that makes this city additional viable and recent particularly within the monsoon season.

    Samsung M620 Black mobile is just big enough to display four icons side
    by side and measures only 1. With the i – Phone you can stay connected anywhere you
    go, and access maps, flight info, weather reports,
    restaurants and more in every new city you travel to.

  2. Anonymous

    I too have been considering this. (For a while, so I need to get a move on!)

    Is anyone familiar with the FHA streamline process? It is supposed to be quicker and easier since one already has an FHA mortgage in place.

    Also, has anyone used quicken loans for a re-fi or mortgages in general?

    Thanks for any info!

  3. Anonymous

    I have refinanced once already, so I’m at a 5.75%-ish rate. I tried to refi again in the fall but my house was appraised at or around what I paid for it, so I would have had to have PMI (not worth it IMO).

    I’d like to try again since ING Direct has had some good rates, but I’m not sure how I would qualify now: I lost my job in December and I’m a FT student, although I have two part-time jobs and make about $1600 a month. I graduate within the year. Anyone think I can refi at these lower rates?

  4. Anonymous

    I have also checked out refinancing. I am currently in a 15 year mortgage at 4.25%. I haven’t found a bank that will do a “no-cost” mortgage because my loan balance is too low, about $70,000. If I refi into a 5/1 arm and keep paying the same as my 15 year it will take several years to recoup the closing costs in saved interest, so I’m passing on the opportunity.

    I would like the extra flexibility of a smaller minimum payment but it’s not worth the closing costs. My mortgage payment is currently about 26% of my take-home pay which is not bad at all.

  5. Anonymous

    I just paid off my second mortgage and my Loan-to-value ratio is around 80% which allows me to refinance my 6.125% first mortgage.

    The 3.5% is the best I’ve see at my local bank. This guy is jumping on the opportunity to refinance!

  6. Anonymous

    Ginger – check out aimloan.com. We’re working with them right now and we locked in a rate of 4.375% last week and our closing costs are going to be very low (though not completely fee-free) since we also will have to have an appraisal.

    I’m not sure what their minimum is though.

  7. Anonymous

    @Brian — 10% … I’m not sure that a very defensible number (if hoping or fearing), even in some of the worst markets. 1% gain, flat or 2% loss are more likely, especially if you look at Japan. Granted, maybe regionally, if major cut to the DoD budget means a major reduction in a workforce, than yes, 10% drop outside that area would be very likely (I’d not buy in Cocoa Beach for a long while).

    Generally, I’d say in most regions real estate is a good buy, but only for the ‘right’ reasons (your long term primary residence or very long term investment). I think we’re in to that long “dead” period of our own “lost decade,” now we’re about 4 year into it (choosing 2007 when all regional markets were in decline).

  8. Anonymous

    I am having trouble finding a no-cost mortgage. I have a 4.75% rate mortgage right now but any mortgages I find below that are about $4000 in closing costs. The problem is I only have a $47,200 mortgage so I have very few banks/credit unions that will loan money for a mortgage that low. I have heard wells fargo has been doing no-fee mortgages, maybe I will check them out.

  9. Anonymous

    I think for refinancing, the time to do it is now. For buying, I think it’s worth the wait. We’re in a Japan-like lost decade, so I expect rates to stay low, plus I think housing prices are sure to fall another 10% or more over the next few years.

Leave a Reply