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February 28, 2008

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I'm thinking about it. I have a 30 year fixed at 6.35% and I got a call from Chase (my current servicer) offering to waive all closing costs and origination fees if I refinance with them. Maybe the banks are getting desperate for customers with good credit.

Might have to wait a while...

http://www.thetruthaboutmortgage.com/mortgage-rates-climb-back-to-levels-in-november/

I was a little upset when we locked in at 6.5 and saw rates drop through December and January. Not so much anymore...

The reality is that there is more that goes into the equation than what is listed. Things like wanting to use extract idle equity for investments or added liquidity, maybe even seizing opportunities to expand your real estate portfolio during this downturn. There are also times when refinancing may look right on paper, but really isn't in your best interests.

Hey FMF,
I've been reading your blog for a while now but never commented yet. Instead of going out to lunch now, I bring something to work and read your blog everyday. I especially like the christian perspective. Keep it up brutha.

We just refinanced at the beginning of this month, and we locked a rate of 5.5% in mid-January.

I'd probably refinance to eliminate the 2nd mortgage if we were going to stay longer in our current home. But right now it doesn't make sense for us since we are probably looking at moving this year or next summer.

As it happens, we just closed on our refinance from a 5.875% 30 year fixed to a 4.625% 15 year fixed with no cash out. We'll pay about $250/month more in payments but we'll pay almost $1K/month in principal with the first payment versus only $350/month principal paydown after being 7 years into the 30 year.

Just refinance a $220,000 mortgage and cut the interest rate from 6.25% to 5.625%. In addition we now have 20% equity in our home so we eliminated a $150 PMI charge from our monthly payment. Total monthly savings is $300 so we will recoup the refi costs within 6 months. No way I'm paying off this low cost new loan early at my age (35)

We're refinancing right now - from a 6.5% rate to a 5% rate on a 30 year fixed. We'll end up saving about $200 a month on our monthly payments. The payback period for refinancing - about 13 months for us. We're happy with dropping 1.5% on our rate!

If your loan is owned by Freddie Mac or Fannie Mae, as most are, you may be able to refinance through the Home Affordable Mortgage Program, or HAMP. This program was specifically designed to enable those homeowners with no equity to refinance their mortgages to a more affordable interest rate.

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