Should I refinance my house?

5 Replies

Hi I am new here. My family purchased their home for $325,000. We currently owe $280,273.58 with an interest rate of 4.625%. Should we refinance our home to get a lower interest rate? Our rent is $1,975.52 but only $414.33 goes to our principal payment. Any help? I would really appreciate it

@Mirella Tinoco  Yes!  Interest rates are at an all time low right now and they will more than likely be on the rise into next year.  You can jut lower your payment or take some cash out and lower the rate either way it's a great time.

@Mirella Tinoco I just refinanced to 2.5%. So, yes, rates are low right now. However, your LTV is a little high (86+%) if your home is still worth $325k. You don't say when you originally purchased your home, but if that's still about what your home is worth, you're not likely going to qualify for the best rates and you're certainly not going to be able to take cash out.

I did a lot of calling around before I finally decided on the lender I went with for my refi, and all of the lenders I talked to were tightening up their criteria for the "best" rates (i.e. specific loan amounts, LTV's, credit scores, etc).

It still wouldn't hurt to shop around and see if you can find someone that can beat that rate.  It doesn't cost anything to talk to lenders, and - who knows - you might find someone that can help you out.

Good luck.

@Mirella Tinoco   In that case, I would definitely call around.  If you have good credit, you should be able to shave about 2% off that interest rate.

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