Should I refinance my rental property?
My current rate is 5.75 - 30yrs fixed. I've paid 4 yrs. My loan agent is trying to push me to do the refinance, but i'm not sure if it worths it. It'll be 5.25 - 30yrs fixed (no point no fee). Should I refinance? I may save about 170 bucks a month but will need to start from scratch again and start from 1st yr out of 30yrs. Any expert can give me some goood advice?Thanks! by kfursher from , . Jul 22nd 2011
Chris Gummerson (cgummerson11)
#397 ranked lender in California - 648 contributions
Take a look at the closing costs and the amount you save. You want to figure out the break even point of the mortgage. Take the closing cost, title, escrow, appraisal, interest etc, and divide that by the savings 170. So if your loan settlement charges are 3500 / 170 = 20.59 months to recover your closing costs. So if you kept this loan for 2 years, then you would realize the monthly savings. Also, look into what you are going to do with the money. If you plan on saving each penny, then its a good idea, if not most people will find away to spend the money they saved. Good Luck!
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