When would you re-fi your mortgage loan?

[Alex_angel]

If you signed a loan in the last few years and say next year loan rates go down more, at which point do you look to re-fi? Do you look for a 1/4% 1/2% a full percent drop before re-financing?

I know people that could have re-fi a few eyars back and lowered their rates by about 2% but refused because they felt “comfortable” in their current loans. Why would anyone hesitate to re-fi if they can save per month?

[Anonymous]

Hi Alex,

My strategy is pretty simple in times like this when the rates might go down for a little while (cf. recession): I keep doing no-cost refis as soon as I can get a .25% lower rate (I might even pounce for .125% but it is a bit time consuming so I usually don’t).

Note that the no-cost refis usually carry a .25% interest rate premium over the regular refis to cover the commissions and closing costs. That said, the strategy stills guarantees you a pretty close-to-the-bottom interest rate with no extra cost involved (besides the time spent).

Rene

[Anonymous]

Hi Alex,

My strategy is pretty simple in times like this when the rates might go down for a little while (cf. recession): I keep doing no-cost refis as soon as I can get a .25% lower rate (I might even pounce for .125% but it is a bit time consuming so I usually don’t).

Note that the no-cost refis usually carry a .25% interest rate premium over the regular refis to cover the commissions and closing costs. That said, the strategy stills guarantees you a pretty close-to-the-bottom interest rate with no extra cost involved (besides the time spent).

Rene

[Anonymous]

Hi Alex,

My strategy is pretty simple in times like this when the rates might go down for a little while (cf. recession): I keep doing no-cost refis as soon as I can get a .25% lower rate (I might even pounce for .125% but it is a bit time consuming so I usually don’t).

Note that the no-cost refis usually carry a .25% interest rate premium over the regular refis to cover the commissions and closing costs. That said, the strategy stills guarantees you a pretty close-to-the-bottom interest rate with no extra cost involved (besides the time spent).

Rene

[Anonymous]

Hi Alex,

My strategy is pretty simple in times like this when the rates might go down for a little while (cf. recession): I keep doing no-cost refis as soon as I can get a .25% lower rate (I might even pounce for .125% but it is a bit time consuming so I usually don’t).

Note that the no-cost refis usually carry a .25% interest rate premium over the regular refis to cover the commissions and closing costs. That said, the strategy stills guarantees you a pretty close-to-the-bottom interest rate with no extra cost involved (besides the time spent).

Rene

[Anonymous]

Hi Alex,

My strategy is pretty simple in times like this when the rates might go down for a little while (cf. recession): I keep doing no-cost refis as soon as I can get a .25% lower rate (I might even pounce for .125% but it is a bit time consuming so I usually don’t).

Note that the no-cost refis usually carry a .25% interest rate premium over the regular refis to cover the commissions and closing costs. That said, the strategy stills guarantees you a pretty close-to-the-bottom interest rate with no extra cost involved (besides the time spent).

Rene

[Raybyrnes]

Suggest that you are doing this that your are keeping the same number of months on the refi or else you potially are going to pay a larger amount in interest becaeu the amortization schedule is resetting.

[Raybyrnes]

Suggest that you are doing this that your are keeping the same number of months on the refi or else you potially are going to pay a larger amount in interest becaeu the amortization schedule is resetting.

[Raybyrnes]

Suggest that you are doing this that your are keeping the same number of months on the refi or else you potially are going to pay a larger amount in interest becaeu the amortization schedule is resetting.

[Raybyrnes]

Suggest that you are doing this that your are keeping the same number of months on the refi or else you potially are going to pay a larger amount in interest becaeu the amortization schedule is resetting.

[Raybyrnes]

Suggest that you are doing this that your are keeping the same number of months on the refi or else you potially are going to pay a larger amount in interest becaeu the amortization schedule is resetting.

[Anonymous]

There is really no advantage not to refi. If you refi-ed at a lower rate, kept paying the same payment and did not take cash out, the new loan would be paid off earlier than the original would have been.

Now, I agree with Raybyrnes that when you realize the monthly savings by paying a lower monthly payment, you do extend your loan and increase the amount of interest due but you can control that variable.

Rene

[Anonymous]

There is really no advantage not to refi. If you refi-ed at a lower rate, kept paying the same payment and did not take cash out, the new loan would be paid off earlier than the original would have been.

Now, I agree with Raybyrnes that when you realize the monthly savings by paying a lower monthly payment, you do extend your loan and increase the amount of interest due but you can control that variable.

Rene

[Anonymous]

There is really no advantage not to refi. If you refi-ed at a lower rate, kept paying the same payment and did not take cash out, the new loan would be paid off earlier than the original would have been.

Now, I agree with Raybyrnes that when you realize the monthly savings by paying a lower monthly payment, you do extend your loan and increase the amount of interest due but you can control that variable.

Rene

[Anonymous]

There is really no advantage not to refi. If you refi-ed at a lower rate, kept paying the same payment and did not take cash out, the new loan would be paid off earlier than the original would have been.

Now, I agree with Raybyrnes that when you realize the monthly savings by paying a lower monthly payment, you do extend your loan and increase the amount of interest due but you can control that variable.

Rene

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