Prefer to talk in person? Find a mortgage specialist on Zillow
Profile picture for taw2349

Is it worth refinancing in today's economy?

we have been in our house 2.5 years and have a 30 year fixed @ 7%.  Just unsure with job situations if this would be a good decision.   
  • January 26 2009 - Winston-Salem
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (6)

ALERT:

This thread is from 2009. With their 7% rate, if they didn't refinance in 2010... they waited too long. Refinancing in 2010 from a 7% rate for anyone that qualified was a no-brainer. It's still a no-brainer now and the 2 point rule is made up nonsense. Each situation is different. Saving 1% from a 5.875% to 4.875% refi of $417K with no fees drops your payment by $259.91 and the break even is immediate. 
  • February 27 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Rule of thumb is 2 percentage points. If you can better your interest rate by at least 2 points then it would be worth looking into.  Whenever one thinks about re-fi they should plan on remaining in the home approx 5-7 years to recoup the cost to re-fi.  It is always good to get a few opinions from mortgage professionals before making such a move. 
  • February 27 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Dear Mr and Mrs Claus,

If you are going to kick off this Sunday with a Zillow blitz of question answering, may I suggest you check the dates. No one here wants to see:

A)  a rehash of a 2 year old thread
B)  agents answer mortgage questions 
C) matching couple outfits  
  • February 27 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

A lower interest rate will lower your monthly payment but with the extra cost to refinance you should be able to keep your home until after you recoup the exrta cost of the refinance. You should contact your local finance company for advise on this subject. 
  • February 27 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

bottom line . . . if you lose your job(s) you may be forced to let the house go and find somewhere else to live (rent).  If you refinance your home to lower your monthly payments you may position yourself to better weather the storm of losing a job.  All of this assumes that you have equity in your home and can successfully refinance your high rate first.  Be proactive and try to position yourself to be prepared for the worse case scenario.  Talk to a professional who can guide you and give you a solid estimate of the best program choice, your costs to refi and a clear and accurate estimate of your monthly savings.  Take action now.  

  • January 26 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Lowering your interest rate and thus your monthly payments would be a smart financial move in this economy. The fact that you have only been in your home 2.5 years and your current rate is 7%, is more of a reason to do the refi. If you plan on staying in your home a while, refinancing can save you money.

Put a quote request on Zillow and then crunch the numbers.
  • January 26 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.