| Posted By |
Message |
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Worth it to try and refinance if planning to move in 1-3 yrs?
We have a 30 yr fixed and 5.75 rate. Been here 3 years, don't know much about refinancing but I see rates in the 4's now... can you even refi if you're not upside down?Our house is still worth more than we paid and we've paid a lot down too. Our mortgage is low already so not sure it would be worth it esp if we're not planning to stay here forever. wdyt?
|
Posted 6/16/11 3:11 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
MrsPorkChop
Twinning!!
Member since 5/05 9941 total posts
Name:
Missy
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
you have to pay closing costs and that alone might make it not worth it
your best bet is to speak to a mortgage person - they cna guide you
fwiw- i was going to refinance and since i was planning on moving within a couple years, he talked me out of it
|
| Posted 6/16/11 3:20 PM |
| |
|
-Lisa-
---------------
Member since 5/05 6530 total posts
Name:
Lisa
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
You should calculate your breakeven point - how long will it take you to save the $$ it will cost to refinance?
as an example with made up #'s:
if you're saving $400/month, and its cost $4000 in closing costs to refi, you would break even in 10 months.
Once you know how long it will take to recoup the cost of the refi, you can decide if its worth it or not based on when you're planning to move.
We re-financed 2 years ago, and we're moving this summer. For us it was worth even though we knew it was short term because we went down >1pt, and we went to a 15yr mortgage so we were paying off principal a lot faster while paying less interest.
Message edited 6/16/2011 3:21:53 PM.
|
| Posted 6/16/11 3:20 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
Posted by -Lisa-
We re-financed 2 years ago, and we're moving this summer. For us it was worth even though we knew it was short term because we went down >1pt, and we went to a 15yr mortgage so we were paying off principal a lot faster while paying less interest.
Thanks, this is what i'd want to do. Our mortage is pretty low to begin with so I think we could swing a 15 yr.
|
| Posted 6/16/11 3:40 PM |
| |
|
jellybean78
:)
Member since 8/06 13103 total posts
Name:
Mommy
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
Posted by -Lisa-
You should calculate your breakeven point - how long will it take you to save the $$ it will cost to refinance?
as an example with made up #'s:
if you're saving $400/month, and its cost $4000 in closing costs to refi, you would break even in 10 months.
Once you know how long it will take to recoup the cost of the refi, you can decide if its worth it or not based on when you're planning to move.
This plus add on how much less you will be paying in your mortgage i.e. going from paying $1500 to paying $1000 is a savings of 500 a month. If it takes you less than a year or two to recoup costs I would do it.
|
| Posted 6/16/11 3:47 PM |
| |
|
-Lisa-
---------------
Member since 5/05 6530 total posts
Name:
Lisa
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
Posted by jacquig
Posted by -Lisa-
You should calculate your breakeven point - how long will it take you to save the $$ it will cost to refinance?
as an example with made up #'s:
if you're saving $400/month, and its cost $4000 in closing costs to refi, you would break even in 10 months.
Once you know how long it will take to recoup the cost of the refi, you can decide if its worth it or not based on when you're planning to move.
This plus add on how much less you will be paying in your mortgage i.e. going from paying $1500 to paying $1000 is a savings of 500 a month. If it takes you less than a year or two to recoup costs I would do it.
thats the $400/month savings I referenced above...how much she's saving with a lower payment.
But:
Posted by CaMacho
Posted by -Lisa-
We re-financed 2 years ago, and we're moving this summer. For us it was worth even though we knew it was short term because we went down >1pt, and we went to a 15yr mortgage so we were paying off principal a lot faster while paying less interest.
Thanks, this is what i'd want to do. Our mortage is pretty low to begin with so I think we could swing a 15 yr.
a 15yr mortgage will likely increase your payment even with a lower interest rate. So your breakeven point would have to be calculated differently - how much more equity you're earning vs. interest you'd be otherwise paying if you didn't refi.
|
| Posted 6/16/11 4:08 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
Posted by -Lisa-
a 15yr mortgage will likely increase your payment even with a lower interest rate. So your breakeven point would have to be calculated differently - how much more equity you're earning vs. interest you'd be otherwise paying if you didn't refi.
Thanks Lisa, I guess we'll have to actually meet with someone to go over numbers. Do people usually refinance with their current bank or a new bank?
|
| Posted 6/16/11 4:35 PM |
| |
|
Nik211
my little monkey<3
Member since 5/08 3303 total posts
Name:
Nik
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
i'm not sure how much you mortgaged but i'm sure it isn't that far off from mine - our mortgage is less than 200k....the monthly savings on 100k or 200k isn't as much as it would be on 500k or 600k kwim? so i'm not sure if it would be worth it??? my rate is 5.3 and we are eligible to re-finance in the fall but i'm not sure if it is worth it for us either....people we know in NY are saving a lot each month by re-financing their rate but for us it would only be a few dollars b/c our mortgage is so much less to start with...
i hope that made sense....
|
| Posted 6/16/11 4:35 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
Posted by Nik211
i'm not sure how much you mortgaged but i'm sure it isn't that far off from mine - our mortgage is less than 200k....the monthly savings on 100k or 200k isn't as much as it would be on 500k or 600k kwim? so i'm not sure if it would be worth it??? my rate is 5.3 and we are eligible to re-finance in the fall but i'm not sure if it is worth it for us either....people we know in NY are saving a lot each month by re-financing their rate but for us it would only be a few dollars b/c our mortgage is so much less to start with...
i hope that made sense....
You did and you're right... not sure if it would be worth it to just save $100/month or less which is probably what it would be right? Maybe there is some kind of refi calculator online?
|
| Posted 6/16/11 4:44 PM |
| |
|
KimberlyScott
Graceyn=My World <3
Member since 10/08 4173 total posts
Name:
Kimberly
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
Did I miss something?
I thought you listed the house?
|
| Posted 6/16/11 5:20 PM |
| |
|
CaMacho
Sisters :)
Member since 7/06 15112 total posts
Name:
Jess
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
Posted by KimberlyScott
Did I miss something?
I thought you listed the house?
 I probably just didn't update. We met with the realtor last month, signed all the papers and the next day we were supposed to email pics to him but decided we just weren't ready to leave. We're going to wait, our mortgage is really low, taxes went down again, so we're going to wait a bit to save some more money.
|
| Posted 6/16/11 9:18 PM |
| |
|
KimberlyScott
Graceyn=My World <3
Member since 10/08 4173 total posts
Name:
Kimberly
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
Posted by CaMacho
Posted by KimberlyScott
Did I miss something?
I thought you listed the house?
I probably just didn't update. We met with the realtor last month, signed all the papers and the next day we were supposed to email pics to him but decided we just weren't ready to leave. We're going to wait, our mortgage is really low, taxes went down again, so we're going to wait a bit to save some more money.
I think that's a great idea 
|
| Posted 6/17/11 2:09 PM |
| |
|
bobby769
LIF Infant
Member since 7/10 253 total posts
Name:
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
For every 100k you borrow you pay $100/month for each point of interest.
So, a 200k mortgage at 5% would have a monthly payment of about $1000.
bankrate.com has monthly payment calculators.
Keep in mind that the closing costs for a refi when you go to another bank will be higher than if you stay w/ the current bank.
W/ a rate of 5.75 and current rates for those w/ excellent credit and high income being at low to mid 4s I really think at best you'll see #s where wheter or not it's worth it for you to refi, it'll be right in the middle.
If you have a high loan, you might save quite a bit w/ a 1.4% reduction, but certain aspects of closing costs are based on the loan value so that could drive up the closing costs.
|
| Posted 6/17/11 2:23 PM |
| |
|
ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
We were told it's only worth it to refinance if the rates are 1pt less AND you plan on staying put for another 5 years.
|
| Posted 6/17/11 3:00 PM |
| |
|
babycakes18
LIF Adult
Member since 4/09 1281 total posts
Name:
Dani
|
Re: Worth it to try and refinance if planning to move in 1-3 yrs?
You should definitely shop around...get rates from your current bank and a few others before deciding. If you go with a different bank you can still do a consolidation, Extention modification agreement....so you only pay mortgage tax on the difference between your current principal on your current loan and the amount of your new loan.
If you do a CEMA with your current bank...it's all done internally so your costs do wind up being a little lower.
I have no idea if any of this makes sense! Sorry :)
|
| Posted 6/17/11 10:50 PM |
| |
|
