Zillow Advice: Home Improvement - Should I refinance now or wait until after the first of the year?

Rates are great right now, ...

Tue, 16 Dec 2008 06:51:00 GMT

Rates are great right now, no need to wait. There are many factors to consider; your current rate, do you have a prepayment penalty, how long do you plan on living in your home. Now is a great time to refinance.

In addition to some of the ...

Sun, 21 Dec 2008 09:44:00 GMT

In addition to some of the wise advice you got, perhaps consult with a Banker whom you trust, and is NOT in conflict of interest in the reply he/she will give you.

John,I am currently shopping ...

Fri, 19 Dec 2008 03:01:00 GMT

John,
I am currently shopping a new loan. We have a 5/1 arm at 5.5% that does not expire until 2010. My husband feels that the Fed is going to keep pushing down the rates until 30 yr fixed are at 4.5%. Right now I am getting good faith estimates on closing costs from different lenders to compare. I have told ALL of them when the rate hits 4.5% I will refi to a 30 yr fixed. Whoever has the best deal for closing costs with NO points at 4.5 will get the deal. So, depending on your reason, you may want to get some estimates to see if it is worth your time. Just be careful, closing costs and points can be a killer.

In essence I agree with both ...

Wed, 17 Dec 2008 19:38:00 GMT

In essence I agree with both my counterparts, and their explanations. Personally I like "rexonator's" answer more!

Before refinancing take a realistic look at your scenario, not only for the refinance of your home mortgage. But also anything, like employment and other contributing factors. Is your job related in any way to the auto industry??? Is your position at work, secure? Is your employers financial situation very stable? Like your planned years in the home, fees you will incur, penalties, etc.
Generally speaking if you can safely answer those questions honestly and positively, then "Get-R-Done! * The only contention to consider is the Auto Industry! If the government doesn't at least help them, then this whole country is going to go into a tailspin! Unless your current rate is 7% or higher,Try to hold out for that decision or until rates drop to the expected 4% area.

I agree with Amber - historically, ...

Wed, 17 Dec 2008 19:24:00 GMT

I agree with Amber - historically, rates in the 5% range has always been considered a great rate. Can it go lower, possibly but the difference will be of a minimal impact in the long term.

The real question is why you want to refinance and as Amber points out, your current financial situation as well as your current loan.

Please remember that no matter what someone tells you, it will cost you several thousand dollars to refinance the property. You may pay for it with fees, higher rates or stretching the payoff over a longer period. But the bottom line is that the monies must come from you in order to cover the costs of doing the loan.

Keeping those things in mind, figure out how many years it will take you to recover the costs to make an informed decision.