Question:
“Do you think rates are low enough to refinance?”
Answer:
I don’t know your current rate or whether you have a fixed or adjustable rate, so…
If you have a fixed rate now and want another fixed rate:
Depending on your loan balance and tolerance for paperwork, you want to at LEAST get a rate .5% lower than what you have now on a no-cost refinance. Many people won’t refi unless they can drop their rate at least .75% or 1%.
I mentioned a no-cost refi because that’s easier to compare. But with the tradeoffs of a no-cost refi, you may possibly be better off with a refi where you have fees.
If you have an adjustable loan now and want a fixed rate:
This is more complicated depending on your current loan terms. But I think you’re smart to at least consider it because the mid- to long-term outlook for rates is definitely UP.
I know a GREAT mortgage lender who can help you decide for your specific situation. Just give me a call for their contact info.
