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I hear people are switching mortgages bec rates went down

 
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amother




OP
 

Post  Mon, Jul 20 2020, 3:03 am
So if someone has a mortgage rate of 3.75% from 4-5 years ago, and now the rates are much lower, how much would he save monthly on a $350,000 mortgage (or is 3.75% considered low now too and similar to whats being offered now)?
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amother




Cobalt
 

Post  Mon, Jul 20 2020, 3:54 am
Call a mortgage broker to see what rate you can get, and how much it will cost to refinance. Then you can do the math.
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ez-pass




 
 
 
 

Post  Mon, Jul 20 2020, 7:22 am
A mortgage broker is your best bet. You can pm me for a name if you don't have someone you use.
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amother




Oak
 

Post  Mon, Jul 20 2020, 8:21 am
You may have to pay a large closing cost. Do you have alot of years left on your mortgage?
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amother




Scarlet
 

Post  Mon, Jul 20 2020, 8:28 am
I bought my house about 7 years ago at a rate slightly better than yours. I was also excited to refinance to the new low record rates, but when I called our mortgage broker, he was honest and said that now that we're so far into the mortgage, the refi fees would eat up any rate savings we'd have and maybe even more, and advised against it. If you have extra money, you can always just make an extra payment when you're able, and that will pay down your balance faster with no extra chrages.
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amother




Khaki
 

Post  Mon, Jul 20 2020, 8:46 am
You can get rates of 2.75 or 3 for a 30 year now and way lower for a 15 year if you can afford that. There are mortgage calculators online that would tell you how much you’ll save. Our rate was over 4 and we owned our home for only a few years so it was a no brainer for us. We had all the closing costs added in to the new mortgage so we didn’t have to lay out any cash other than a small fee.
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amother




Jetblack
 

Post  Mon, Jul 20 2020, 10:30 am
Does it matter if your credit score is low. My credit score is 6.7 because we have a lot of debt
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amother




Hotpink
 

Post  Fri, Jul 31 2020, 12:14 pm
Same. We’re still in the process of closing but we’re saving almost 800 a month which we could use (thanks corona for killing our commissions!). We bought two years ago.


amother [ Khaki ] wrote:
You can get rates of 2.75 or 3 for a 30 year now and way lower for a 15 year if you can afford that. There are mortgage calculators online that would tell you how much you’ll save. Our rate was over 4 and we owned our home for only a few years so it was a no brainer for us. We had all the closing costs added in to the new mortgage so we didn’t have to lay out any cash other than a small fee.
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amother




Bisque
 

Post  Fri, Jul 31 2020, 1:41 pm
I'm not an expert in this area but I think it's only worth it if you bought your house recently.

The way the mortgage payments are structured is that in the beginning the bulk of your payment goes towards interest and only a small part towards the loan.

So if you're paying mortgage payments for more than a few years your loan size is still quite large as most of the money went to the interest which you'll start paying again when you do a refi.

This may not make any sense as I'm not an expert but that's how I understood it.

We did a refi because we only bought the house a year ago. It was well worth it.
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amother




Emerald
 

Post  Fri, Jul 31 2020, 2:30 pm
We're I'm the middle of refinancing now. Bought 6 years ago with a 4.25% rate for a 30 year. We are refinancing to a 2.5% (hopefully) for a 15 year and our monthly payments will be roughly the same as before.
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amother




Lavender
 

Post  Fri, Jul 31 2020, 5:16 pm
amother [ Emerald ] wrote:
We're I'm the middle of refinancing now. Bought 6 years ago with a 4.25% rate for a 30 year. We are refinancing to a 2.5% (hopefully) for a 15 year and our monthly payments will be roughly the same as before.

Wow, that's amazing! I bought 7y ago, at 4.375% for 30y, so similar to your situation. Does it matter what state you're in? Are you in Brooklyn?
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ddmom




 
 
 
 

Post  Sat, Aug 01 2020, 10:51 pm
amother [ Emerald ] wrote:
We're I'm the middle of refinancing now. Bought 6 years ago with a 4.25% rate for a 30 year. We are refinancing to a 2.5% (hopefully) for a 15 year and our monthly payments will be roughly the same as before.

Sounds like a very good deal!
Can you share which lender you're doing it with?
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nchr




 
 
 
 

Post  Sat, Aug 01 2020, 10:59 pm
Usually you should only refi if you're saving more thab 1% annually. But you should make your own decision after speaking with someone who knows your financial situation.
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