I've refinanced once and am trying to refinance again. I was hoping for better rates after a year of payments but didn't get offered anything super significant. The best rate I got offered is 0.7% less than my current rate with my current lender for a 15 year term instead of 20. However, the monthly payments are exactly the same as what I pay now. Is it worth refinancing? Should I just try again in several months?
Posted by Alternative-Can1276
2 Comments
find out the difference in total cost, divide that by 240, if you would pay that much more a month on your loan to be done 5 years earlier don’t bother refinancing just increase your payment.
Just to confirm, your current loan has a 20-year term (with 20 years remaining, or?) and the one you’re considering is a 15-year term, but the payments are identical? I would probably switch if there is no big fee to do so. That cuts off 5 years of payment right there without changing anything. That’s significant.
Interest rates will probably get cut once the new fed chair gets in, but it’s still not perfectly predictable. It could be fast. It could be slow. We could have other political drama that changes things. It’s hard to say.