Refinancing questions? Pros come on in?

So my childhood friend wants to refi. However she has a 30 year fixed 5.62 rate. Is it possible for her to refi? Arnt rates much higher now?

ETA: She is in Suffolk County.

Message edited 7/10/2008 5:25:43 PM.

Re: Refinancing questions? Pros come on in?

I would not refinance with that rate. Do you know why she wants to refinance because I might have a different answer. If she wants equity out of her house I might suggest taking a home equity loan and leaving her first mortgage at the rate she has and taking a smaller 2nd. It will also save her a ton of money on closing costs.

Re: Refinancing questions? Pros come on in?

i would NOT refinance at that rate. that is an awesome rate, you can't do better than that, even in this market. we are closing next week and the lowest we could get was 6.25 (as the house costs go down, interest rates, go up). She could very well NEVEr have to refinance with that.

cons of refinancing are the closing costs. if she needs a loan, i would do what the PP suggested and get a home equity loan (which will most likely be a muchhigher rate) but at least the mortgage, which is the bigger loan is at a lower rate.

Re: Refinancing questions? Pros come on in?

rates are higher then that now



the rule is the new rate should be atleast 1 point LOWER to make it worth it

Message edited 7/10/2008 6:30:00 PM.

Re: Refinancing questions? Pros come on in?

She's got a good rate already. No need.

Re: Refinancing questions? Pros come on in?

I think she wants to save money. But I too though the rate was a good rate. We have a 5.99 aka 6% and I wish we could refi lol