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When should I refinance?

Hi there, we bought our house in August of 2007 and right now with the way the economy is I'm wondering if we should refinance to a better mortgage payment? We pay $1,350/month right now for our mortgage, and we're really feeling it now. So I was wondering when would be a good time to refinance. Thanks ladies for all your help.

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Asked by Anonymous at 7:37 PM on May. 17, 2009 in Money & Work

Answers (4)
  • depends whats your rate? the rate are good right now.

    Answer by Anonymous at 7:55 PM on May. 17, 2009

  • Depends on your rate and how long you plan to stay in it. Also depends on the loan you can get and if you can afford to do it because their are costs. Your house has to appraise out at a certain amount to even get a loan and if you have only owned it for less than 2 you have not paid much off. If your house has depreciated enough because of the recession they may not give you anoter loan. I'd call the lender you have now and ask them about it because usually they will roll costs into the loan you have.
    Good luck.

    Answer by itsmesteph11 at 9:14 PM on May. 17, 2009

  • Check your credit score, figure out how long you'll be living there and whether or not you are upside down in your mortgage, and then call your bank and see what rates they are currently offering.

    I think I read that it is worth it to refinance if you can get 1/2 percent lower, or more- and if you are going to live there for the next 7 years. Keep in mind, this is only what I think I remember- so don't put too much weight on it. Run some calculations and figure out how much that will lower your monthly payments.

    Answer by Erica_Smerica at 10:02 PM on May. 17, 2009

  • It depends on your current rate and credit score. Check with friends and family members and see if they have found great rates lately. Be careful, you may wind up paying fees that are more than your savings. And be sure that you are getting a fixed rate, not an adjustable.

    Answer by rkoloms at 6:12 AM on May. 18, 2009

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