Bought my primary residence in 2007 i think the rate was about 6.5%, refi about 2 years later to 5% then 1 year later got it down to 4.25%.

Now I am seeing rates in the 3's!!!!

I owe about 285K on the house now so I think I would save about 130$ a month.

What do you guys think? worth the trouble or should I just be happy with the 4.25%

I would like to keep this house, possibly as a rental if I buy something bigger.

And my last question is what are the chances that I could pay a fee through my bank for a "quick refi"

I would certainly recommend that you refinanced at a lower rate if you have the option.  The possibility and whether or not you would have to pay a "quick refi" penalty is up to your lender though.  Just my opinion.

http://www.ar15.com/forums/t_1_5/1267078_I_m_refinancing_my_house_for_3_25__on_thursday.html


http://www.ar15.com/forums/t_1_5/1267078_I_m_refinancing_my_house_for_3_25__on_thursday.html&page=2#i31480398

ar-jedi

Are you paying refinancing costs each time you refinance?  If so have you even recouped the costs you paid out in the past yet?

yeah, no haven't recouped just yet, probably pretty close though.  I'm not that concerned about the old refis if i can save money over the next 20 years.

To the OP:  I recently refinanced and had a similar situation as yours.  Bought our current house in 2008, mortgage was 6.5% on 30yr note.  Now I am on a 15yr mortgage at 3.25%.  My payment went up about $60/month.

I would just keep the 4.25%, my rate is 6.00 %, I refinanced twice with a no cost refinance from 7.25% down to 6.5% and now 6.0%.  My mortgage balance is so low it's not worth refinancing again.



Instead of saving interest by once again refinancing just add extra monthly payments to your principal each month.  You'll save on interest, more so than if you went with a lower rate.



You said you broke even almost on the last refinance, did  you recoup your savings on the first refinance?  If not, you're looking at refinancing increasing debt or paying out of pocket closing costs at a loss.



If you do refinance, I suggest the following:



1) do not increase the term limit of your loan.  If you're 3 years into a 30 year mortgage that means you have 27 years left, if you refinance for a new 30 year loan, you pissed away 3 years of mortgage payments.  Go from your 30 year loan with 27 years left on it down to 20 for example.  Bam, you saved 7 years of payments



2) do not increase the amount of principal you're refinancing.  If you owe $285K and refinance say $290K to roll in the closing costs, your mortgage balance is going up not down.  You want it to go down.   Pay extra principal



3) Look at a no cost refinance.  It works.  You don't pay closing costs.  The gotcha is you'll pay about .5% more in interest rates.  Nobody rides for free.  But if you can shave .5% off your interest rate you save on interest on your very first payment of the new loan, you don't have to pay for 2-3 or more years to break even and then start saving



 

wow that worked out well, i'll have to look into that.

Some Refis are taking forever to get done, due to the volume, I'm going on 3 months now, but should be in "The home stretch"



Getting 3.5% for 15 years, no points