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Refinance from a 5.5% rate

I'm currently in a mortgage at 5.5% home value of 250k, with 205k left on the mortgage. I have 22 years left on my mortgage and I was wondering if I should refinance or not. I hear closing costs are around 6k, my credit has improved since I took the loan out, and I've made a little progress towards total debt. With a credit score of 765, do you think I would save money if I refinanced now? by jeffre_921_847 from Provo, Utah. Nov 22nd 2011 Reply


Mike Burns (EmeryFCU)
#35 ranked lender in Kansas - 2 contributions

You will be able to drop your rate by over 1 full point. Yes, it would make sense to refinance at this point.Mike Burns913-396-1911

Nov 22nd 2011
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Marcus Buchanan (mbuchanan)
#310 ranked lender in California - 28 contributions

Refinancing into a lower rate is always a good exercise in most cases. With your situation of a approx pmt of $1419 P.I. payment you could drop it to $993 saving you around $425 a month. Your closing cost will depend on whether or not you decide to pay any points for a lower rate. Not always reccommended. send me an email and ill send you a nice spread sheed that explains the cost and terms. mbuchanan@paramountequity.com hope this helps... Marcus

Nov 22nd 2011
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Alesia Dailey (alesiardailey)
#29 ranked lender in Utah - 1 contribution

You would definitely save money if you refinanced. Rates are extremely low right now. I can credit you back some of the closing cost fees also to reduce your closing costs. Please give me a call with questions you have and I can run the numbers for you 801-897-4672 Alesia Dailey

Nov 22nd 2011
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Brett Pehrson (brettpehrson)
#19 ranked lender in Utah - 228 contributions

Jeffrey, refinancing would absolutely make sense based on this information. There are different ways to structure your refinance so you can keep low or no closing costs if you're not worried about bragging rights about your interest rate...you should be able to drop more than 1% off your rate even with a no closing cost transaction. Now that property taxes for you have been paid for the year, it makes these transactions easier to put together, too. I'd be happy to show you a couple refinance options and help you determine what makes the most sense for you. Just email me at brett@homeloansinutah.com, call at 801-918-9385, or complete an application online at http://www.homeloansinutah.com/applyNow.html.

Nov 22nd 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

You can absolutely save if you refinance... if you do a no cost loan then any savings is exactly that, 100% savings... if there are costs involved, you have to see where the break even point is... divide your total costs by your monthly savings... this will tell you how many months it will take for you to break even. Ask your lender to do a Total Cost Analysis. This should put these numbers on an easy to read graph.. WilliamAcres.com

Nov 22nd 2011
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Brian Allen (ballen)
#43 ranked lender in Maryland - 191 contributions

Provo, as all have stated you would do well by dropping your rate a full percntage point if not more you may also consider a 15 year. Like to know more you may be able to better on the costs. Free Analysis email me at ballen@accessnational.com

Nov 22nd 2011
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Cory Ure (coryure)
#46 ranked lender in Utah - 50 contributions

Hi Jeffrey. Right now Conventional rates in the low 4's and FHA and VA are in the upper-3's, so yes, refinancing does make sense. Where you do have to be cautious though is loan-to-value. If an appraisal comes-in at $250,000, with a loan of $211,000 your LTV will be 85% which, if you have a Conventional loan, will require mortgage insurance which may nullify any savings in monthly payment that you get from dropping the rate. If the appraisal comes-in at $264,000 or higher this isn't an issue.You didn't mention what kind of loan you have so I can't tell you if this will be the case in your situation. You may or may not already have mortgage insurance on your loan depending on the LTV or loan type when this loan was originated.If you don't have mortgage insurance now and your loan-to-value comes-in above 80% we can always look at taking advantage of the HARP program (Home Affordable Refinance Program) which will in effect "streamline" refinance your loan and eliminate the need for mortgage insurance on the new loan.Call me at 801-971-7916 and we can discuss your situation and see which route will save your most. I'm available to talk most any time that convenient for you.Cory

Nov 23rd 2011
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