at what percentage rate does it make sence to get a new mortgage?

  • June 13 2012 - Westminster
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Answers (5)

the gold standard still applies. 1% min reduction, and always figure out how long you plan on keeping the property so you can figure out the breakeven point.  Good luck...
  • June 13 2012
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Profile picture for David Widlund
If you can reduce your interest rate without incurring any costs or increasing your principal amount, it can make sense at almost any reduction of your interest rate.
  • June 13 2012
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Profile picture for sunnyview
Before you call a broker, you can use a breakeven calculator to run some basic numbers, but the interest rate on the mortgage will depend on your credit and other factors.
  • June 13 2012
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When is comes to getting a new mortgage, you need to consider the terms of the current note first. Determine what the balance on the note is, how much of that is principle and how much of that is interest.

After you've done that compare the monthly payments and your current financial situation. If you need a lower monthly payment, then refinancing is the way to go. If you want a lower monthly you have to balance out in you mind what is more important a lower monthly payment and/or lower total cost of ownership.

With a question that requires such attention to detail, you really need to talk to your realtor and/or a mortgage rep.  The inportant numbers are the one below the surface.
  • June 13 2012
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Profile picture for Charles Moore
I heard people say you need to drop at least 1%, but it really comes down to the break-even point on costs. If you can save .375% and all your costs are covered that would make sense. You need a mortgage professional to sit down and review your individual situation.
  • June 13 2012
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