Misc.Jul 7, 2018

Refinance Rate Alerts

What do you use to track rates of refinance for your mortgage? Ideally, I’d like to get an email whenever rates drop below a threshold so I can consider refinancing. Zillow documentation claims to have this feature but it seems like stale feature that I’m not sure exists anymore.. any other advice? TC: 290k / 8yoe

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Oath Poahrbe Jul 7, 2018

Did u just buy?

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WegV17 Jul 7, 2018

Unless you paid a stupid high rate when you bought, refi is not worth it. All it does is drain cash for closing costs again, or jack up your principle if you roll them into the loan. More importantly, it starts the clock over on interest calculations. The first few years of a mortgage most of your payment is interest. You don't start really paying down principle for several years. If you refinance, you go back to paying mostly interest again. You are better off making 1 or 2 extra principle payments a year, that will reduce the amout of your payment that goes to interest very quickly.

Uber plug Jul 7, 2018

What if you put down more down payment?

Amazon sarcasticg Jul 7, 2018

Refinance would cost about 1.5-3% of the property value depending on your city. Most of these are city/county fees. I'd personally think it is a better option to pay towards principal than towards closing costs. Most lenders say the break even point for refinancing is about 48-54 months.

Oath Poahrbe Jul 7, 2018

Yeah, exactly. I think new buyers typically look into refinancing because of buyers guilt. Eventually everyone realizes that it’s not a silver bullet.

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DuQvV7 Jul 7, 2018

Factor closing costs into refi. It’s rarely worth it unless there is a massive rate drop. Rates are actually going the opposite way...

Apple FruitSelle Jul 7, 2018

Check if your mortgage allows recasting. This is useful for making a big down payment and reduce your monthly payments, keeping the same end date for the mortgage. Your interest rates will be same.

Microsoft 7590 OP Jul 7, 2018

Interesting ideas for sure. Thanks!

Gap Saturyay Jul 8, 2018

You can switch from 30 yr fixed to 10/1 arm and get a lower rate and even buy down. It’ll save you money for 10 yrs and you can decide to sell or pay off the place by then.