Mortgage Question

I’ve got a 30 yr fixed at 5.75%, I am about 5 years into it.
I’ve seen rates have been creeping down into the low 5’s.
At what point should I consider a refi?(any mortgage broker suggestions?)
I plan on staying in this home for the forseeable future.
Our property taxes seem to going up, up year over year, hence mortgage payment up up year over year.
If it matters, my only other debt is a car note for 12 more months.
Any recommendations/advice are appreciated.

Gary will be able to give more succinct advice but I wouldn’t refi until you can get a full point under what you’re currently paying.

My wife has been selling real estate here in Hudson for the past 5 years. When we originally purchased our home we locked in at a about 6.5%. When it went down to 5.38 we pulled trigger and refinanced for 15 instead of 30 yrs. Our payment went up very little and our house will be payed off in 1/2 the time.

Talk to Gary, a sponser and site staff and great mortgage guy. http://www.wellmanmortgage.com/

I am not a mortgage expert by any means, but I would think that at least a 1.5% decrease in rate would be call for refinancing. There are somethimes hefty fees involved with refinancing.

I would stay, the cost to refi will be greater then any savings you think you will save over the next 10-20 years. Or be about the same. But talk to a good banker to to a cost compare the 2.

Hi Sandpike!
If you would like, we can chat about options via PM or email. I’m not at the office now. However, if you wish get ahold of me tomorrow. Go to my website below and you will find all of my contact information.

We can crunch numbers and figure out if it makes sense to refinance or not!

thanks for the responses,
Gary, sent you a PM.

Check out you ammortization chart. You can get a copy from your lender. The longer you hold your mortgage, the more money starts going to principal. Anything under a full point minimum would probably be a waste as far as re fi, after closing fees. Also, check into the Bi-weekly mortgage option. It turns a 30 year into a 24 year and your not hit with 1 big payment-but 2 smaller payments, knocking down your principal twice per month rather than once. Another thing to watch is the APR. The RATE your quoted is usually not the APR. You may be told your rate is 5%, but look closer and you will find your APR is 5.5%.

APR and Interest rate on your loan are two different subjects. Long story/explanation short, APR is basically the interest rate “for the day”.

Here is a “snapshot” explanation of what APR means.

Annual Percentage Rate (APR) Government Definition:

Quote:

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A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans.

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Please, do not mix APR and Interest rate together when trying to compare apples to apples. APR is what it cost you to get the loan, meaning that your closing cost are part of your refinance. If you pay all of your closing cost out of pocket and only borrow the exact dollar amount to purchase your home, then your APR is the same as your interest rate.

If your interest rate is 5% on a 180 payment plan over 180 months, then the interest you pay if 5%.

Where are you seeing a 5% mortgage? That we WAY off the market rate for a 30 year fixed.

There is a company offering 5.125% rate on a 30 yr. refi through advertising on the radio.

It exist, along with about 7000 other programs on the market. It is just a matter if that program fits your needs or not and is “cost effective” or not. I will state this: I haven’t sold this program to anyone yet and really don’t have much intentions to do so. Why? My clients won’t like me much when I try and sell them the “details” of what it takes and “cost” to get it!

There is truley approximately 7000 different home mortgage options to choose from for your home.

Every person is different with their home and their needs. A good mortgage guy is going to review your needs and what you have, and take care of you individualy.