Asked by dazhan  |  Submitted February 02, 2016

I currently am paying 4.75% interest on my 30-year mortgage, and owe $235,000. Should I consider refinancing?

I have excellent credit. The property value is approximately $370,000. Should I refinance?

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  Answers  |  2

February 03, 2016

It might be worth it, depending on what you want to do. The rates are decent right now so you would most likely be able to get a lower rate and in turn lower your monthly payments. You have a good amount of equity so you would be able to pull out some cash if you wanted/needed. If you plan on staying in the house for the rest of your life or at least for the life of the loan then I would recommend refinancing, I'm not sure what state you're in but you could contact a lender that you can trust and have them price out the rates for you. However, if you only plan on being in there for a few more years then it wouldn't make much sense to pay $3,000-$6,000 in closing costs just to lower your rate 0.500%.

$commenter.renderDisplayableName() | 10.01.20 @ 20:40


February 16, 2016

You need to have a mortgage professional give you a total cost analysis and to look at the cost over 5-10 years in order to make an informed decision. If you are in CA I can help you with this myself.

$commenter.renderDisplayableName() | 10.01.20 @ 20:40