Community Answers

1. 

   1-31-11

   Oldmansea says:

   the only drawback is the finance fee…loans are not free. see finance fees in the paperwork of the home you just bought and see how much they charge per mil (per thousand).

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2. 

   1-31-11

   Tigg says:

   Sure your loan agent notified you. You pay all closing costs again and the agent earns a fee. You gain nothing by that deal.

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3. 

   1-31-11

   Freddy Fuhktarred says:

   the market rate for a 30 yr fixed right now is 4.25..4.75 is kinda high..

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4. 

   1-31-11

   LendingTree says:

   This seems to be a question everyone is starting to ask themselves. Although refinancing a mortgage could save you money in the long run, it’s important to ask the question “How long will it take before I start to save money?” To figure this out, start with the amount you will save by lowering your monthly payment. Then add up all the costs associated with refinancing and divide the total by your monthly savings. This will reveal the number of months it will take to reach the break-even point.

   To give you an example, let’s assume that refinancing would lower your payment from $ 1,000/month to $ 800 month (saving you $ 200 per month.) Your prepayment penalty, closing costs and points add up to $ 2600. Divide $ 2600 by $ 200 and this tells you that it will take 13 months to realize the savings.

   Keep in mind that your break-even point depends on other factors as well, including your tax situation and whether you pay closing costs up front or roll them back into the principal of the new mortgage.

   It’s important to shop around before you decide to refinance since the rates that lenders offer can vary by almost 1%. It’s also wise to make important calculations based on the information of your new loan to support your refinancing decision. Since your loan agent has already told you he can refinance you at 4.75 or 5%, it may be a good idea to ask for a customized, detailed quote. That way you can make those calculations and see if refinancing would be financially beneficial to you.

   For free, helpful mortgage calculators, you can visit:

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