Q: I am paying 5% on $160,000. A lender is advertising a 30 yr FRM at 3.85%/4.191% APR, or a 15 year FRM at 3.25%/3.476%. Would closing costs be out of sight?
A: You should contact the mortgage lender and ask for a Good Faith Estimate of Closing costs (GFE). While under no obligation to provide you with one until you actually apply, they may, and that should give you a good working sense of the fees involved in your refinance. You should know that advertised rates are for truly optimal borrowers, and your situation is likely to be different.
More help from HSH.com
When refinancing at a higher rate makes senseTrade 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.
Are ten-year fixed-rate mortgages (FRM) available anywhere?Sure! Virtually all lenders who sell product to Fannie Mae or Freddie Mac will be able to offer you mortgage with a 10-year term. However, interest rates are usually the same as the lender's 15-year offerings.