Still A ReFabulous Time to Refinance

We are a few months removed from the initial “now’s the time to refinance your mortgage”. But times, they haven’t been a-changin’:

The rate on a 30-year fixed mortgage with no points hit 5.01 this week, slightly up from 5 percent last week but down from 5.97 percent this time last year, and the 15-year fixed mortgage rate hit 4.46 percent, compared with 4.47 percent last week, according to the latest data released Wednesday from Bankrate.com. These rates are at, or close to, the lowest levels since the company’s tracking began in 1985.

“Today’s record low mortgage rates represent an opportunity for homeowners to refinance at lower fixed rates or to trade out of an adjustable rate mortgage before an inevitable increase in rates and lock in permanent payment affordability,” he said.

Refinancing can be a big pain in the rump. But a 1% reduction on your mortgage can save you thousands of dollars over the life of your loan.

So how do you tell if a “refi” is right for you? You can perform a simple breakeven analysis. There are immediate costs associated with the refinance. But, there are future savings associated with the refinance. So it becomes a time game. If you will be in the mortgage/house long enough – it is a no-brain-er. It is that simple. That, or you could use a Refinance Calculator.

So, if you are sitting on a high or adjustable interest rate, now is the time. Do it. 3-2-1-Do it. Do it now. It will save you lots of money. Do it.

via Why Now May Be a Good Time to Consider Refinancing a Mortgage – Bucks Blog – NYTimes.com.