Is refinancing my house a good idea right now?

Gala
My mom and I are on a loan for a house (it's under my name, primarily) but a lady from the mortgage company sent her an e-mail saying it's a good time to refinance to save around $200 on the monthly payment. I am hesitant as my boyfriend says refinancing is bad and could negatively affect my credit, but I want to know more before we proceed on this. The lady is apparently a senior loan officer with the mortgage company (her e-mail looks official) but she suggested meeting at a Starbucks to discuss this, which seems like an iffy arrangement to me, as I thought business should be conducted at the office. Is it just me being suspicious, or does this sound like a good idea? What are the pros and cons of refinancing? Thank you!!

Arnoldo
First of all your boyfriend is wrong about refinancing hurting your credit. My Wife and I are doing it as we speak and are going to shorten our term by 5-years and lower our payment by almost $300.00.As long as you qualify and can get at least 1.5-2 points better interest rate it's the thing do do. Interest rates are at a all time low right now.

Frederica
If you have a fixed rate and can lock in a new rate that is close to 2% less than what you are paying now then it almost always works in your favor to refinance. One of the most important things to keep in mind are the fees associated with the new loan. Make sure they are minimal! Cheers!

Francene
Advantages Of RefinancingIt has been found out that there are many reasons for home loan refinance, which include:• Lowering the interest burden• Extension of repayment time• Paying off debt• Reduction of riskBy refinancing the home loan at lower interest rate will help you in lowering your monthly burden and substantial savings. If you wish to change the financial priorities, extension in the payment schedule may prove helpful. This can be achieved by refinancing at an extended period.Disadvantages Of RefinancingRefinancing also involves risks, before you exercise refinance option evaluate various penalty clauses against the benefits of refinancing.Most of the fixes rate mortgages invoke a penalty clause on the early payment of the loan.There will be a transaction fee for refinance, as soon as one takes the refinancing route.Weigh the benefits of refinancing against the penalty and transaction fee. If they sound good proposition only then take the refinancing step. All the best...Regards

Charmaine
Without knowing anything about your loan it is hard to say if refinancing is a good idea or not. I am often solicited for new loan. They all claim they will save me money. They are not a better deal than my current loan. Each time you refinance there are fees paid by you.I have never met with a loan officer anywhere besides their office.Here is what you have to know to make an intelligent decision.What is your current rate?What is the proposed rate?What is the term or length of the current loan?What is the term of the proposed loan?Is the current loan a fixed rate or variable?Is the proposed loan fixed or variable?I prefer fixed because it is easier to predict. I always know what the payment is and am not at the whim of the market.What is your current APRWhat is the proposed APRWhat is the current amount financed?What is the proposed amount financed?Without the above questions answered it is impossible to determine whether it is a good idea or not.If you don't understand these questions study them and learn them. It is not hard once you decide to. It is allot less complicated then being stuck in a bad loan.Your current loan might be great or it might be terrible. The proposed loan might be great or it might be terrible.Don't do anything until you understand what you are doing