I took new loan (7/1 ARM) to buy house 7 months back, now I’m getting offer from same lender that I can refinance to reduce small interest (0.375) and at zero closing.
I am suspecting May be there is a catch, is it good idea to refinance to save small interest? and are there any advantages with first home loan.
Update: existing and new loan are same terms 30 yr 7/1 ARM and interest reduces from 3.75 to 3.375.
- Symantec drthvaderI do have the same case. I am getting 3.75 % for 30 year fixed. My current rate is 4.25 with 7/1 arm.
- 0 closing means you are paying a lot, it's like when Verizon gives you a "free" phone
- Re-finance also means that you have lost the interest that you have already paid. is it even worth considering?
- New DuQvV7xThis question is incomplete.
What rate do you have on 7/1 ARM. And what rate are you being offered for the refi. Is it also 7/1?
Also, you will have some recording costs that may add up to several hundred dollars (check your local government) that is not often covered by that $0 closing.