I have now been in my house for a year is it a good ideal to refinance? I am currently on a 30yr fixed. and am looking to lower our monthly payments?

April 06, 2008

Posted by Chavez43

( 1 rating )

Interest rates on the 30-year fixed mortgage are at historic lows. The current rate is around 5.98 percent. In the 80s, rates were at between 15 to 16 percent. Interest rates don't automatically go down when the Fed cuts the prime rate, rates respond to overall market sentiment.

It is a good time to look into refinancing. You'll need to see the deal your lender is able to offer and then determine the cost and benefits of refinancing, including fees like closing costs.

If you have good credit, get started now....

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April 12, 2008

Posted by Moneyvelocity

( 0 ratings )

Chavez is correct, Edward. Interest rates are great right now. Refinancing a home is a great option for homeowners with enough equity to do so. We wouldn't recommend this for you, Edward.

You have only been in your home for a year. Not enough time to build up equity to pull out. In most cases you will be paying mostly interest and very little principle the first 5 years of your mortgage. If you do decide to refi, it's a great time to buy investment property with that money.

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