Finding the Lowest Refinance Mortgage Interest Rate [mortgagegoalrates.blogspot.com]
Question by : Should I refinance my mortgage interest rate? Should I refinance my interest rate on my home mortgage? I have been in my home for 9 years and an employee from Chase finance (Chase is my current lender) said for me not to refinance since I have paid off a good portion of the interest. Is this true? Should I refinance? My Chase mortgage interest rate is 6.5 fixed. Best answer for Should I refinance my mortgage interest rate?:
Answer by someone
Unless you get a rate of 4.5% don't bother. Closing costs will eat up the small monthly savings
Answer by Lisa L
Have a loan officer run the numbers for you. You have paid down your mortgage so your balance will be less, therefore your loan amount will be less. Look at a 20 year mortgage. If you have good credit you can get below 5%. You will skip making a payment the first month of your new loan so plan on bringing that amount to closing rather than putting all costs in your loan. If you intend to stay in your home for several more years it may be worth it to refinance. Get opinions from several lenders. Then you can make an educated decision.
Answer by Paul
Can you refi into a 15 year loan? If you are in a 30 year loan and you refi, you'll go back to square one to save a few bucks each month. 30 more years of payments! If you are planning to move in the next few years and don't think you can afford the current payments, then maybe a refi is a good option. If you are planning on staying in the home for a long time and you dont have a problem with the payments then I wouldnt do it... If you could get a really good rate (you have good credit) on a 15 year loan and your payments are going to end up about the same I would do that for sure...
With average 30-year mortgage rates at 3.56%, the typical mortgage features an interest rate that's nearly a full percentage point lower than it was this time last year. But even as rates plunge, refinancing applications fell for the third week in a ... Why Aren't More People Refinancing Their Mortgages?
Does Refinancing Right Now Make Financial Sense?
A lot of Americans are excited since President Obama passed his "Making Home Affordable" plan as part of the economic stimulus package. The requirement that lending institutions offer a 2% interest rate to those hit hardest by the failing economy and a loss of income is indeed something to get excited about. But do you qualify for it?
The fact is that you must be eligible for this great low rate. Your mortgage payments must be current and you cannot have fallen past due for more than 30 days in any month from the previous twelve. The payment for your mortgage needs to be 31% of your monthly income or higher, and you need to prove your financial hardship. If your mortgage was written by either Freddie Mac or Fannie Mae, you are also eligible for refinancing at the 2% rate.
If none of the above applies to you, then you must refinance at the prevailing rate offered by the lender.
Sometimes the difference is not great enough to make good financial sense. Consider finding an online mortgage payment calculator as a way to help you decide.You will find lots of them available on the internet. Before your new payment can be calculated, you will need to know how much you still owe on your current loan, the length of the mortgage, and the interest rate charged. You will need the new interest rate, as well.
Bear in mind that this figure will not be totally accurate unless you know the amount of any fees or points that must be paid to refinance. Even without these figures, however, the online calculator will give you a good indication if refinancing is even a viable option in your circumstances.
Plan to Find the Lowest Mortgage Refinance Interest Rate
Finding the lowest mortgage refinance interest rate is going to require a bit of effort on your part.
You may want to subscribe to an online service that alerts you of overnight rate changes. When the mortgage interest rate gets down to an acceptable low, then you will have to act fast to ensure it is locked in on your loan.The prevailing mortgage rates can fluctuate quite a bit. This is based more on supply and demand than it is on the prime rate. If demand is low, so will interest rates decrease, and vice versa.
Consider the Federal Reserve's role in changing the mortgage interest rate. The prime rate is often lowered in order to stimulate a sluggish economy. The expectation is that borrowing, and spending, will increase. Vendors know that this is the time to raise the prices on goods. As inflation occurs, mortgage bond values decrease. Mortgage lenders, then, raise their rates to cover the loss.
There is a lot to be aware of when seeking the lowest possible refinance mortgage interest rate. Most homeowners do not have the time or skill to do so. You may prefer to work with a reputable company that can find the best loan product for you, and let you know as soon as the interest rate becomes low enough to make refinancing worthwhile.
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