Would there be any reason to refinance a fixed 5.6% 30 year mortgage?

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Someone told my husband that they had gotten a 30 year loan on a mortgage at 5%. Is this possible and would there be much of an advantage to try to refinance to a fixed lower rate than 5.6%? Thanks

6 Comments
  1. Reply
    Philip R
    April 30, 2011 at 12:36 am

    That is Todays Prime rate. If you Refinance it would be to pull capital out of your house and your payment could increase. If you need capital, Pull some equity out of your home and invest it something where you get more than 5.6% interest return. If you don’t want to take the risk, Keep that great rate!!!

  2. Reply
    peilthetraveler
    April 30, 2011 at 12:49 am

    you would save 38 dollars per month per 100k. If it costs you 2 or 3k to refi how long would it take you to actually be better off? 5 to 7 years thats how long. Unless you wanted to pull some cash out, its probably better to just leave it alone.

  3. Reply
    RON G
    April 30, 2011 at 1:28 am

    Not unless rate goes way down youd be better to pay some extra payments every so often and your payment will take less time to pay off.When you pay extra be sure to have them put it toward the principal youll be surprised in how much you can save.

  4. Reply
    Firebird
    April 30, 2011 at 2:26 am

    There is not much of an advantage. If you save half a percent each year, then over 4 years you’d save 2%, obviously. So if you can refinance with less than that spent on the work, and you aren’t going to move away in 4 years, it’s okay to do.

    I have also been hearing there are some 5%’s out there. Be sure and get a fixed. If you can swing a 15 year fixed, do it. You’ll thank me later.

  5. Reply
    Keep On Trucking
    April 30, 2011 at 2:36 am

    Yes. This is possible and the advantage would be that your payments would be lower. Try to find one with no closing costs and zero points.

  6. Reply
    Steve R
    April 30, 2011 at 3:00 am

    If it goes down to 4.6% then you’ll save some money.

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