I have a 30 year mortgage at 5.5% from 2009. I have been late but never past the late date. Can I refinance to lower my payment?
Answers | 3
A refinance with a new lender is one possibility. At today's low rates, a refinance may make perfect sense, though you would still want to consider how much more time you plan to spend in your current home, among other things. Paying the costs to close a refinance may not be advisable if you plan to move before the lower rates could offset the expenses associated with refinancing.
You may also ask your current lender if they will simply lower your rate. Many lenders are willing to lower rates to keep borrowers from shopping elsewhere. This adjustment to your rate may cost considerably less than a full refinance.
Of course, there are many other considerations for your mortgage. For example, if your cash flow allows, you could consider a mortgage with a shorter term, which could have the advantage of even lower rates and less time for those rates to produce interest. Other circumstances may lead you to pull cash out with a refinance, to provide liquidity. A financial planner privy to your circumstances can provide greater insight and specifics.
I write loans nationally, glad to help with any further questions, and I can be contacted through my profile, Thanks, Ted