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Should I refinance again? Can i do it at 0 cost?

I refinanced our mortgage in July and got a 3.625% 5-1 ARM (interest only). Should I refinance again? Would it be worth my while? I asked this question on this site and got great responses, but I still need to get re-assured. by refior_715_298 from Orange, California. Oct 10th 2011 Reply


Nathan Rufty (nathan.rufty)
#527 ranked lender in California - 63 contributions

If you have a long term plan for you home, then I would refiance into a long term fix rate for 15 or 30 years. If you have a short term plan like a 3 year plan then you are good as long as you have equity in the home, you can get a long term interest of what you currently have

Oct 10th 2011
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Ronald Farah (ronaldf)
#519 ranked lender in California - 4 contributions

In today's market and the historic low interest rates, it is always a good idea to look into refinancing; especially if it is not costing you anything.Personally, I advise most clients to go towards a 30 year fixed, if they can; rates are low and most economists would tell you that in a couple of years tops, economy will be on the rise again, along with interest rates...So depends on your future outlook and individual situation, you can take different suggestions, but it is your decision at the end ...To be able to give you more information, some of the things I would need to know would be: are you in a conventional or FHA loan ? what is your fico score ? what is the amount of the loan ?You can email me at ronaldf@americanlendinginc.com

Oct 10th 2011
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RANDA MISHLAWI (mishlawir)
#198 ranked lender in California - 10 contributions

I would say it depends on two factors: What is the amount of your loan?? and how long do you plan to stay in the property??The greater the loan amount ( up to $417K for conforming) the greater would be the savings and the more likely you can do it at NO COST.If you plan to stay in the property for 5-7 yrs, then I suggest you get a 7/1 , fully amortized if you can affor the payment.

Oct 10th 2011
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James Barath (JamesBarath)
#9 ranked lender in Indiana - 352 contributions

To be candid, there is no such thing as a zero cost home loan. You will either pay directly in fees or indirectly in terms of interest rate. If you're okay with that, then as others have alluded you must weigh your personal time frame of owning your existing residence and the time it will take to recoup your costs. Happy Columbus Day!

Oct 10th 2011
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