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Mortgage balance of $61,365.00 with the interest rate of 4.8750%, now adays rates are extremely low does it make sense to refinanc

by m.r.ibera201 from , California. Oct 9th 2020 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Hello Mr. Bera.. Yes.. rates are low.. but depending on your motivation, it might or might not be worth it. If you are just looking to lower your interest rate, then it's unlikely refinancing will make much sense.. Lower loan amounts have higher rates than larger ones.. so you might see 2.5% being advertised, but you might be closer to 3.5% to 4%.. which would result in a possible $50 to $60 per month savings assuming your refinancing for 30 years.. When you add up the closing costs.. it could take several years of savings to pay for the upfront costs required to refinance.. making your scenario not that desirable.. However, if you have a loan that you've had for 15 years.. and want to refinance for a new 30 year loan.. it could be a significant savings.. Additionally, if you are looking to pull cash out, then the rate is irrelevant.. Every scenario is different, and the only way to know for sure would be to reach out to a local mortgage profession and let them evaluate you scenario.. only then will you know for sure.. William J. Acres, Trusted Lending Center, NMLS#226347. 480-287-5714

Oct 9th 2020
Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,208 contributions

No, it really doesn't make sense. Even if you were to drop your note rate 2.00%, you would only save about the same as you would spend for the refinance. But with a loan so small, most lenders are going to hit you with pricing adjustments so that is likely you would not even be able to break even. With you plans to pay off so close, I'd just keep making the payments until you actually do pay it off. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ 480-889-9000.

Oct 9th 2020
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