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After just two years, should I refinance again?

Q: Would it be an advantage to refinance a 15-year, $130,000 loan at 4.625% if I just refinanced two years ago? My house is worth $225,000, our credit score is 800, and I want to pay off our house before retirement.
What about closing costs, etc?

A: The answer is "maybe". You don't mention how many years you have until retirement, and you're already two years into your mortgage. Certainly, it's possible for you to lower the interest rate to perhaps 4% with a new 10-year loan, but since your interest differential will be small, your monthly payment will probably rise somewhat.

More help from HSH.com

  • When refinancing at a higher rate makes sense

    Trade your old mortgage for a new, higher-rate version? There are times when it actually makes sense.
  • Should I pay off a mortgage early?

    By making extra principal payments or refinancing your mortgage, you could pay a lot less interest and free yourself from your mortgage ahead of schedule. Here are the pros and cons of retiring your mortgage early.
  • How does a refinance in 2017 affect your taxes?

    After a mortgage refinance, there are some specific "dos" and "don'ts" you need to know prior to filing your income taxes, as well as a few pointers that can help you lower your tax bite.

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