I've only owned the house for 4.5 years now, and I've already refi-ed twice. The house price has dropped by 17% so far.
My initial mortgage was 30 yr fixed rate @7.00%.
My last mortgage was 15 yr fixed rate @5.50%.
My current mortgage is 15 yr fixed rate @4.25%.
Total cost of financing this time around was about $1200. My payments will drop by $213/mo while extending the mortgage by 24 payments. Good deal or bad deal, what do you think?
Mortgage Refinanced for the 2nd time
February 24th, 2011 at 07:12 pm
February 24th, 2011 at 07:45 pm 1298576756
Our first mortgage rate? Over 8% in 1999. Current rate 4.875%.
Breakeven has always been lightning fast with the $200/month savings. Closing costs seem rather moot with dramatic drops in interest rates. We have refied every 1% drop down.
Of course, I believed both the last 2 refis would be the LAST REFI ever. Can't believe we are looking at a potential 4% rate (for 30 years). If I had a crystal ball, waiting to 4%-ish would have been better than refancing 2-3 times. But no crystal ball, so it is what it is.