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Should I refinance if I'm thinking about moving soon?

I have a home valued at 215,000 and currently 8 years into a 30 year FRM at 6.5%. Right now I do not know whether I'm going to move out to another house or refinance this one, but regardless the payments on this home could be cheaper. I'm not underwater on my mortgage, I have a decent credit (725ish last I checked), and thankfully just got a new job which pays more. If I don't know whether I'll be in this home come a year or two from now, would it be best to hold off a refinance and avoid the closing costs, or vice versa? by willia_370_100 from Oklahoma City, Oklahoma. Nov 16th 2011 Reply


Robert Hanson (rhanson)
#38 ranked lender in Maryland - 646 contributions

Hi William?My suggestion would be to do a no closing cost loan. (meaning that I as the lender would credit all your closing costs back to you) If a loan structured like this lowers your payments then you don't lose anything even if you sell the house in just a few months. If you pay closing costs, you are correct to be concerned that you may end up losing that money by selling quickly.Good luck and contact me if you wish more info.Robert HansonWest Town Savings Bank240-752-7549

Nov 16th 2011
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Steve Cooley (steve.cooley)
#5 ranked lender in Oklahoma - 12 contributions

William, I would suggest that we run a couple of scenarios to see which best suits your needs. The no closing cost option as the lender before me suggested, and a normal refinance option which would actually be a better rate scenario. Even under that scenario, if we time it right, you would be able to skip at least one payment and possibly two payments which would more than likely save you enough to cover the closing costs of the refinance. I am with W.J. Bradley Mortgage located in Edmond, OK. I would be more than happy to look into this for you and show you these two options if you are interested. If so, you can apply online @ www.closewithcooley.com.Thank You!Steve CooleySenior Morgage Banker

Nov 16th 2011
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,821 contributions

Yes you should refinance. But... At today's rates you should be able to do a no cost loan. Your rate would be a little higher than if you paid the closing costs out of pocket or added to the loan balance, but still significantly lower than what you are paying now. It is through the higher rate that the costs get paid. If you are 8 years in, you might want to see what a 15 year term does for you. Your payment may be a little lower than what it is today, but it means the home would be paid off 7 years sooner. One thing to look out for is if your loan-to-value would require Mortgage Insurance on the new loan. If so, that might negate much of the savings. The best thing to do is to find a local Mortgage Banker/Broker, and not one of the big cookie cutter banks to work through the numbers for you.

Nov 16th 2011
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,659 contributions

only you can answer that question... you can definitely save money by refinancing, however you need to consider your pay back period, or how soon the additional costs you paid will be offset by your monthly savings... if you do a no cost refinance, at a slightly higher rate, then you cannot loose.. WilliamAcres.com

Nov 16th 2011
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Stephen Harris (stephen.harris)
#38 ranked lender in Ohio - 37 contributions

I would do a lender paid loan and that would help to not add costs back into the loan. You can still lower your rate and save money even if you decide to move. I would look into refinancing your current loan. Let me know if you have any more questions.

Nov 16th 2011
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