How To Know When To Refinance Your Mortgage

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[drunclecookie]

I was a first time home buyer in 2005 and got a 30 year loan... I was stupid for the first 7 years only paying the minimum balance on the loan. In 2012 I refinanced to a fixed rate 3% 15 year loan and my monthly payments did not increase at all. I also started paying $100 extra on the principal every month. Right now I'm on track to pay off the house end of next year, 15 years from the original loan.

[MsOnitemi]

Dave you are amazing! No one has ever explained this analysis. You just saved me a bunch of cash

[Devinfrbs]

My mortgage is 2.1%. Definitely not refinancing anytime soon.

[scotchbudmeister]

I'm at 4.125% on a 30 year with 160k balance - but paying $200/month extra on principal so I'm about 2.5 years ahead of the amortization schedule. I think a 15 year fixed may be worth looking into...

[DanielIles]

Refi when interest is this low into a fixed rate. It’s free money 💵

[cju]

When you buy a house or refinance, void PMI. PMI is a scam designed to protect banks at homeowner's expense. The excuse banks use is that less than 20% down payment is more risky for them. So the homeowner is at fault for them incurring higher risk. Would you pay bank CEO's car insurance because his changes of colliding with you on the road increases when you drive?

[xRyder]

I used to listen to Dave Ramsey show after coast to coast am when I was 14 im 25 now and I have the best credit a home and cars with low APR thank you Dave

[jonathanyugi]

I just refinanced 4 months ago frm a 3.675 to a 3.365% with the intention to drop the PMI! Now my question is should I refinance to a 2.5%. Or just stay where I’m at? Thank you in advance!

[arynnakaoka]

When you refinance, you reset the amortization schedule. Should you account for that because the payments are mostly interest early on in the loan?

[TGSHomeandGarden]

I have a %3.375 mortgage I will probably never refinance.. I missed the 2% wave by 6 mts, Boy would that have been nice.

[Colyers]

I'm having a hard time wrapping my head around a 15 year vs a 30 year which you can make extra towards (to pay off faster). I understand the % will be better but you have so much more flexibility on a 30 year. Also a 15 year in an area like Seattle is VERY steep. 20% down is $100k+ everywhere you look.

[AOLnotas]

So if I own a home with a 4 percent interest rate, right now is not a good idea to refianance because the interest rate is to high righ now?

[MrFuchew]

the 15 year fixed, never seen one only head whispers of them here in Seattle

[sirhanreid]

Hey Dave, how you doing..
Got a question, I was shopping around for a lender to refinance. My credit score is 798..equity in the home is around 300k. After talking with several lenders. Started the process with one, let's say lender a. Lender b called to see what was happening. I told them I had a better offer than with a. At their request I sent lender a's proposal. Lender b came back with slightly lower interest, lower monthly payment and lower closing. I went with b. Thing is, after finishing the documents needed to start the process. They sent me a new proposal, with an increase of closing of 734 dollars. I asked why, I haven't gotten a response yet. Do i have any recourse at all?

[williamcrazylacyfurmage]

I need some advice. My interest rate is 5.75 on a 30 yr loan I got in 2005 for a $86, 000. Is it good to refinance the 14 yrs I have left to a 15 yr at 2.5% to 2.99% interest? As of now my P & I is $501, $275 goes to interest and $226 goes to principal. I just started 5 months ago tossing another $200 a month into the loan. I think I should stay the course and keep tossing $200 to $300 into the loan to pay it down faster. Lenders I've talked to said if I refinance, my new P & I would be $380. BUT, you know when you start over with a new loan, the new payment is MOSTLY interest being paid. Because of that, I think I should just not refinance. I owe $56, 000. House Value on Zillow is $269, 000. Any advice would be great. I want a 10 yr loan, but I'm told I don't qualify.

[blackworldtraveler]

I just bought my place and paid off 30yr. in 9.years and done.

[eyaalem]

Question. I have 350k house by 4% and my loan officer asked me to refinance by 3.5% but when I do the math I don't get that much money. becouse of refinacing fees and closing costs. and I decided to wait if the housing market will drop more. Another thing how it works after you refinansing house to get cash back?

[hvactec]

About to close on a refi next week from 3.65 to 2.25

[celiactrunc]

Can you renegotiate intrest rate with Bank, telling them if the don't drop I will refinance with another bank?

[jordansmith]

I have a 15 year at 3%, with 13 years left. Agent suggested me to refinance at 2.65% for 15 years. Closing costs are $6500. The monthly would be a little lower but interest over the course of the loan will be thousands higher. Should I refinance?