When to refinance

[Anonymous]

No one can answer this for you. What is the cost of the refi (even no cost refis have costs, either in a higher rate or in fees that are lumped into the new loan) and how much will the new rate save per month. Then calculate how many months at the new rate will it take you to break even on the refi fees.

It’s simple math.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are waiting until it goes below 6

what is your current rate? so you would refinance at, say, 5.8?

we initially planned to wait till 5.0. but our monthly payment is huge.

My rate is 6.5% from last year. It's not worth the thousands of dollars for us to refinance until it goes down to at least 5.5%. Our mortgage is also $600K.

[Anonymous]

Our rate is 4.25% from 2022. Will we ever be able to refinance?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are waiting until it goes below 6

what is your current rate? so you would refinance at, say, 5.8?

we initially planned to wait till 5.0. but our monthly payment is huge.

My rate is 6.5% from last year. It's not worth the thousands of dollars for us to refinance until it goes down to at least 5.5%. Our mortgage is also $600K.

We are in the same boat. 6.5 rate on just north of 600K. When do folks predict that'll be worth refinancing? We have a 30 year and want to stay in the house for a while but not forever.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Mortgage rates are based on the 10-year treasury. At this point, the 10-year has baked in several rate decreases already, so not sure it will move much when the Fed lowers rates.

^ As an employee of a large mortgage provider, this is the correct answer. Also, almost done refinancing a 30y from 6.99% to 6.125% with no points. So, you are due up for a much improved rate if you are sticking with a 15y right now.

what about increase in timing and increase in loan balance for refi?

OP here. yes, can you tell us what was the cost of refinancing in terms of timing and loan balance.

[Anonymous]

is it possible to refinance without restarting the clock? can you refinance for, say, 13.5 years?

[Anonymous]

Anonymous wrote:No one can answer this for you. What is the cost of the refi (even no cost refis have costs, either in a higher rate or in fees that are lumped into the new loan) and how much will the new rate save per month. Then calculate how many months at the new rate will it take you to break even on the refi fees.

It’s simple math.

+1

[Anonymous]

Anonymous wrote:is it possible to refinance without restarting the clock? can you refinance for, say, 13.5 years?

No

[Anonymous]

Anonymous wrote:

Anonymous wrote:is it possible to refinance without restarting the clock? can you refinance for, say, 13.5 years?

No

You can recast but that does not change rate.

[Anonymous]

Anonymous wrote:Our rate is 4.25% from 2022. Will we ever be able to refinance?

your rate is historically below average, and a HYSA is doing about the same. You’ll be able to refinance if the economy collapses maybe. You have a good rate!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Mortgage rates are based on the 10-year treasury. At this point, the 10-year has baked in several rate decreases already, so not sure it will move much when the Fed lowers rates.

^ As an employee of a large mortgage provider, this is the correct answer. Also, almost done refinancing a 30y from 6.99% to 6.125% with no points. So, you are due up for a much improved rate if you are sticking with a 15y right now.

what about increase in timing and increase in loan balance for refi?

No increase in loan balance. Closing cost money that we had to bring to the table was just less than one mortgage payment, and we are skipping two months worth of payments due to the timing of the closing. We refi’d a 30y with another 30y, but have only had the house for less than a year so it works out to adding 8 months onto the life of the loan to get $150k in interest savings over the life of the loan.

[Anonymous]

I’m waiting to refi a 6.125% to a 5.25% or so. I think that will happen after the November Fed cut. This would be for a jumbo loan. How common are 20 year loans? 15 years would be very tight and I’ll have two kids in college in 6 years but 20 year may be doable.

[Anonymous]

Anonymous wrote:is it possible to refinance without restarting the clock? can you refinance for, say, 13.5 years?

Refinance to a 15 year mortgage.

[Anonymous]

Anonymous wrote:I’m waiting to refi a 6.125% to a 5.25% or so. I think that will happen after the November Fed cut. This would be for a jumbo loan. How common are 20 year loans? 15 years would be very tight and I’ll have two kids in college in 6 years but 20 year may be doable.

You can take the longer term but pay extra as you are able to, so your mortgage gets done earlier.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are waiting until it goes below 6

what is your current rate? so you would refinance at, say, 5.8?

we initially planned to wait till 5.0. but our monthly payment is huge.

My rate is 6.5% from last year. It's not worth the thousands of dollars for us to refinance until it goes down to at least 5.5%. Our mortgage is also $600K.

We are in the same boat. 6.5 rate on just north of 600K. When do folks predict that'll be worth refinancing? We have a 30 year and want to stay in the house for a while but not forever.

If you are looking for a 5.625% rate then you should be able to get it by the end of this year.