When Does It Make Sense to Refinance Your Mortgage?

When Does It Make Sense to Refinance Your Mortgage?

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[NateDalton]

Bought my house in 2007 @ 6-1/2%. Refinanced in 2012 @ 3-1/2%. Very much worth the little effort.

[todd]

We finally have a 0% interest rate! Paid Off!

[anniealexander]

People should understand that during a recession, home prices come down and interest rates follow. Pay down your mortgage so you can refinance and save cash to buy another investment. Get your heloc in place before the recession begins. Make sure you have so much equity that the lender doesn't question your credit line.

[contextual_investor]

What benefit is there to your mortgage company to refinance with you? Mine just reached out to me yesterday actually and randomly asked if I was interested in refinancing. My mortgage is just over 1 year old at a 7.875% rate, and they called me to offer a refinance at 5.99% with no cash out of pocket. I’m a bit skeptical because it sounds too good to be true, especially since I know rates haven’t been cut yet. Why would they want to randomly give me a much lower rate? That being said, it would save me almost $1, 000 a month on interest so it sounds like it’d be worth it regardless?

[mikeyserrano]

Idk if we'll see that soon with CPI coming in hotter than expected haha

[Moisesireyes]

Maybe the community can help me out here. My monthly payment quite high since I only did 3% of a 6.785. In the past 2 years the equity went up past my 20% needed to take PMI off. Is it possible for me to refinance into a conventional to lower my monthly payment and remove the PMI?

[ryebread]

Under 4% you won't be able to any time soon. Those at 7, 8 fine.

[CobaltLobster]

If refi my 2.125% Assumable VA mortgage, I'll be calling you guys because something is VERY WRONG in the universe.

[johnristheanswer]

I'd say when the rate is lower than you're paying currently.

[berttorpson]

Me watching this knowing I will never own a house