When to refi 6.875 mortgage APR
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Anonymous
| Use a refi calculator and figure out when the break even is given the closing costs you'll incur. It generally works out that it is worth doing a refi when the delta between your existing rate and the new rate is 1% or greater. We're entering a cutting cycle today, so it might be worth dragging your feet a little bit on it. Rates will continue to drop at least for the next 12 months. Also consider that it takes a couple months to refi, and a lot of companies let you do 1 rate adjustment while you are going through the process. Maybe start in the spring |
Anonymous
|
The Fed is meeting today and will be cutting rates by at least a .25.
They will provide guidance on future expectations assuming that things continue. If the fed cuts by .5 pt, I would wait for this to filter through mortgage rates. It is not an immediate one for one. |
Anonymous
| You keep posting the same thing OP. |
Anonymous
lol |
Anonymous
| The old rule of thumb was to refinance when the new rate was 1% better. Nowadays, there banks/credit unions that do true no cost refinances. If you can save money every month without extending the terms, then go for it. |
Anonymous
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We are in a similar position OP. 6.8% rate but about 40% equity.
Likely will refinance by the end of the year. If rates go to 5.2% I think we hit break even at 18mos. |
Anonymous
| anytime you can get anything below 5%, go for it. |
Anonymous
Are people getting below 5% now? Looking forward to another cut in early November that should get some lenders close to that. |
Anonymous
We refi last week and got 4.875% on a 15 year. Previously at a 30 year. I think rates came up a smidge this week. |
Anonymous
Would you mind sharing your lender? Thanks. |
Anonymous
| Wait until 4% |
Anonymous
| Where are folks getting 4%? |
Anonymous
| I am still looking for 5%! |
Anonymous
Seriously. Wtf? |