Comments on: Will Mortgage Rates Go Up or Down?

By: Anonymous

Anonymous — Tue, 29 Jun 2010 19:08:54 +0000

You posted this article about 2 yrs ago. Now it is 2010 and the rate right now is at 4.5% for 30yrs loan. So I guess the financial experts are wrong.

By: Anonymous

Anonymous — Wed, 14 Jan 2009 17:44:00 +0000

Keep one thing in mind when you refinance a 30-year fixed loan: the term will start over. Meaning, if you currently have a 30-year fixed loan and have paid on it 5 years, your new loan will start that 30 years over again. So, your monthly payment will go down (due to the new percentage rate) but you’ll be paying on it longer. Just keep in mind that the amount you end up paying at the end of each loan may be the very close. So, the decision may be: do I want to save $100/month or have my mortgage paid off 5 years earlier. Just food for thought…

By: One Frugal Girl

One Frugal Girl — Tue, 29 Jan 2008 01:42:00 +0000

@jake -- I don't claim to be an expert but it's always best to think about interest rates and closing costs when refinancing. For example, if you save $100 a month by refinancing, but you have to pay $2400 at closing, it'll take you two years to break even with the new mortgage.

There are tons of calculators out on the internet that can help you run these calculations. Check out the Should I Refi calculator here.

By: Jake

Jake — Mon, 28 Jan 2008 16:18:00 +0000

Thanks for the excellent post. I am also interested in refinancing, but had some questions.

I have heard that the rule of thumb is to wait until the refinance interest rate is 1% less, is that true?

How much does it generally cost to refinance?

By: SavingDiva

SavingDiva — Sun, 27 Jan 2008 18:16:00 +0000

Good luck with the refi! Let us know how it goes!