|
does this make sense for me?
Yes, if the numbers make sense. Let us explain.
If you have a fixed rate mortgage at a higher than market interest rate and the lender is paying your closing costs, YES, it makes sense to refinance.
Why? Because your savings are immediate. You reduce your interest rate, pay nothing in closing costs, and lower your mortgage payment.
A rate reduction as small as one half percent (1/2%) results in thousands of dollars saved over the years.
Refinancing an adjustable or variable rate loan certainly makes sense. You have the option of "fixing in" your payment by refinancing to a low stable fixed rate loan, or you can reduce your monthly mortgage payments by refinancing to a new lower adjustable rate loan.
|
 |
