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Refinance Question

I would like to refinance to lower my mortgage payments, but the current market fixed 30 year rate at 4.71% is high than the rate for my loan (balance $138,588 and 3.78%). I would like to know if now is good time to refi for home owners who have low balance on their mortgage. by jimmichie178 from Pawtucket, Rhode Island. Dec 11th 2018 Reply


It depends on your reason for refinance. Do you want to take cash out for home improvement or to pay off debt? Or refinance for a shortter term?

Dec 11th 2018
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The primary driver for making your decision is how much you are looking for cash out is it is it small amount relative to your 1st mortgage balance you are probably best taking a home equity line of credit or 2nd mortgage if it's a larger amount of cash out it may make sense to bite the bullet and take a higher rate how much you looking for

Dec 11th 2018
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I am sorry I miss read your question I don't know why I thought you were looking for cash out

Dec 11th 2018
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Steven Karp (stevek81)
#9 ranked lender in Rhode Island - 139 contributions

Hi jimmichie...in a nutshell, you have a great deal currently...Depending on your current financial situation, such as, you now make more money than you did when you first started the current mortgage...or...how long have you been in the home...you have 3.875% on a 30 year...if you have had it for 5 years...you have 25 years to go...you can lower your term to 15 or 20 years ...save some big bucks by paying more to the principal and paying it off sooner....other than that. probably makes sense to leave it as it is...if you do want to have a simple chat about it, feel free to reach out to me...I work locally at Home Loan Investment Bank....Steve Karp

Dec 12th 2018
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,703 contributions

More info needed.. Mortgage professionals will do an analysis to show you what the closing costs would be and how much you would potentially save.. But in reality, there is no "Savings".. if you go into a higher rate, longer term mortgage.. yes, you can lower your payments, but overall it will cost you.. First, the lender is going to charge you a fee to refinance.. typical in the range of $3000 to $5000.. That amount is either paid upfront or added to your payments.. and then your term gets pushed back out as well.. What's right for you can only be answered by you.. as each and every mortgage situation is different.. As far as the refinance market.. People refinance for many different reasons.. Some are approaching retirement and want to pay off their loan faster.. some are looking to pull cash out.. some might see an opportunity to lower the rate and/or lower the payment.. certainly, rising interest rates will cause a slowing on the refinance side of mortgage's but usually the slowing is temporary.. We've been spoiled by artificially low interest rates for 10 years. now the market is healthy again and rates are going back up to a normal range, people are freaking out... But this I know for sure.. If you can continue with the current loan you have now, then ultimately, that would be best.. if you are struggling and you need the extra breathing room, regardless of how small it is.. then if it keeps you from losing your home, then you have no choice.. refinance. But as I said earlier.. it's had to advise you without knowing all the details.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Dec 12th 2018
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