Current mortgage rate is 575 in los angeles with a lot of equity in the house and excellent credit ?

Emelia
Is it a goodtime now to refinance?

Felix
Contact a mortgage broker and have them do a cost analysis of how much you would save each month versus how much refinancing is going to cost you (loan fees). You can then decide whether it would be financially in your benefit to refinance.And, I say a mortgage broker instead of a particular lender. A mortgage broker gets daily rate sheets from a bunch of different lenders who offer loans with varying rates and terms. If you go to a lender, you're stuck with whatever loan products that lender offers, which might not be the best on the market.The cost analysis will look at how much it will cost you in loan fees to refinance to a certain rate, versus how much you will save each month with the low rate. Let's say you can save $50 a month by refinancing. But, the loan will cost you $3000 up front in fees. That means it will take you 5 years to get to the break even point ($50 a month x 60 months = $3000). And, if you itemize your deductions and write off your mortgage interest, it will take even longer to break even. Plus, you have to come up with that $3000 up front, unless you roll it into the principal of the loan. In that case, your monthly payment will be slightly higher.Some mortgage brokers offer what they call a no-cost loan. This is where the broker gets you into a loan that might be a half point or so higher than if you paid $3000 up front. But, he pays that $3000 out of his commission from the lender. In this case, you may be able to get a lower rate only for the cost of your time to fill out the applications and to sign the loan documents.

Alvin
the benifit depends on your loan balance. Depending on how much you owe, and how long you plan on being in the home you can see some decent savings. ex. if you had a 300K mortgage your 5.75% on a 30yr carries a principal and interest payment of 1750/monthly with excellent credit/equity you can get a rate of 4.875% giving you p&i payments of 1587/monthTotal costs would be around 2500 for lender/title fees and another 1pt(3000) to buy down to the 4.875 depending on your exact situation.you would have to be in the home for at least 33 months to see some benefit, but it may be an option if your plan is to pay off the home. Hope some of that helps

Alyse
I read somewhere that its not worth it unless you can get an entire point down. like 4.75 in your case.I guess the closing costs and refi costs would eat make this worthless.Now consider this if you can. Make one extra payment / year to your home. It's better than getting a 1% discount on your interest rate.google "loan amortization calculator."So far we have saved thousands in interest over the years.If you have any money saved consider getting it out of the market and putting it into your house.The market will go down this year - again./

Marcelo
Determine the refi costs. See how much you'll save per month. Divide the first by the second. That will tell you how many months it will take to recover the refi costs. If you are sure you are going to stay in the house longer than that, go ahead.Traditionally, the guideline was 2% decrease in interest rate was the point where it was attractive. I wouldn't suggest you refi unless you can get it down by at least 1.25%.

Cyrstal
Why would you refinance if you have alot of equity?? Unless your rate is 8 percent, forget about it. Keep your equity until you sell.