Is Refinancing a Good Idea?
I have been paying double payments for a current mortgage for more than a year and should get it paid off in 2 years. My current interest rate is 5.375% fixed for 30 years. I still have $80k left on the mortgage and a bank offered to refinance at 3%. I don’t know how to compute the savings if I refinance. Would it even be worth it? by aschmitz320 from Du Pont, Georgia. Oct 11th 2021
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
Only you can answer that question based on your own personal situation. But the basic idea is to ask yourself: What is the new payment, what are the closing costs, what is the breakeven point, and will you be there long enough for it to make it worth it. generally speaking, almost everyone would refinance based on the rate improvement you would get. Also ask about shortening the term. For example, maybe you could do a 10-year fixed, and with that rate gap, keep the same payment. Any good Loan Officer can help you with this. Contact a LOCAL mortgage broker. I lend in MN WI IA SD ND. Find me at FirstTimeHomeBuyer-MN.com - Cambria Mortgage, NMLS 274132
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