Refinancing Question

Re: Refinancing Questions

Currently, I/we have a 30 Year Fixed Rate VA Backed-Mortgage at 5.5%.
Never Late.

1) Is this really a Good-time to Refinance?
2) What is the lowest rate you think we can possible get?

Thanks for any good input/advice.

MoneyMakers

Edited: 06/26/2010 at 12:56PM by G.D. Haizlip

Bill Gulley

Real Estate Investor · Springfield, Missouri

4889 posts
43266 Influence
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Icon_minipost May 24 '10, 09:03 AM

Hi, I'm waiting til Sep/Oct, maybe Nov. 4.50% with one point & usual CC. that's what I'm waiting for. 24 is on, gotta go, LOL! Good luck, Bill

Edited: 06/26/2010 at 12:56PM

Mitch Kronowit

Real Estate Investor · Orange County, California

1760 posts
17552 Influence
12 Awards

Icon_minipost May 24 '10, 09:30 AM

Originally posted by G.D. Haizlip

Currently, I/we have a 30 Year Fixed Rate VA Backed-Mortgage at 5.5%.
Never Late.

1) Is this really a Good-time to Refinance?
2) What is the lowest rate you think we can possible get?

The answers depend on many variables. Here are some of the questions I asked when I worked in the mortgage business:

How much do you owe on your house? How much is the house worth? Are there any junior liens? How many years are left on your mortgage? What is your objective for refinancing? Do you just want to lower your payment or take cash out? Do you plan on keeping the home for several years? Is getting the lowest rate your primary goal? Are you ok with paying several points to lower your rate? What is your Debt-to-Income (DTI) ratio? Your credit score? Do you have cash for closing or do you want to finance the closing costs, i.e., roll them into your new loan?

Typically, refinancing makes sense when you plan on keeping the house long enough that the money you save from lower payments offsets the costs of refinancing. You also want to look at the time left on your loan. If a brand new 30 year loan is going to cost you more in total payments than what you're going to pay during the remainder of your present loan, why do it unless you're in a real cash crunch and need the lower payment now.

Edited: 06/26/2010 at 12:56PM

G.D. Haizlip

Real Estate Investor · Atlanta, Georgia

103 posts
2 Awards

Icon_minipost May 24 '10, 11:02 AM

Greetings,

Thanks for the response Financeexaminer (much appreciated).

Mitch, I also really appreciate your response which has help me make the decision not to refinance at this time. We are not in a cash-crunch and it would not be to our advantage to do so, based on the questions you posed.

My brother and I have really good credit scores and we both receive refinance offers almost daily. Now, I know what not to do ----thanks to you guys here on B.P.----

Thanks-A-Lot, MoneyMakers

Edited: 06/26/2010 at 12:56PM

Josh Green

Banker · Tampa Area, Florida

962 posts
4831 Influence
6 Awards

Icon_minipost May 24 '10, 12:08 PM

5.5 is still a decent rate. i think you are wise to not refi at this time. not worth the costs.

Edited: 06/26/2010 at 12:56PM

G.D. Haizlip

Real Estate Investor · Atlanta, Georgia

103 posts
2 Awards

Icon_minipost May 24 '10, 01:42 PM

Greetings Josh,

Thanks a lot. I feel much better ---now---because I was wondering if I/we were actually missing out on a good time to Refi. as we constantly receive numbers of enticing offers--so I was not so sure if we would be missing out on a good opportunity.

Overall, I am very happy and at peace with the decision not to refi----
Thanks Josh!

With much appreciation,
MoneyMakers

Edited: 06/26/2010 at 12:56PM by G.D. Haizlip