We just bought our house in october with the interest rates falling is it good to try to refinance now?

Chana
Our APR is 6.75%. I keep getting letters in the mail every day about refinancing our house at no cost to us (no closing costs, etc.), and I am wondering if it would be worth it try.A 1% decrease on $199K would be significant.

Imogene
You won't find anyone who can reduce your rate 1% on a 30 year fixed with no closing costs. The required net yields are up almost 1/2 pt from what they were even last week. That means the rates available to consumers are up equally.I saw one big company offering 5.5 with 2 pts plus about $1, 800. As of yesterday in my market you might have gotten 6% with about $2, 300 in costs. That assumes that you have middle scores above 720 and that you are not in a declining market which could make the valuation an issue.You will probably need to wait until the rates come back down to where they were in January before you could do what you are trying to do. 6.75% is not a bad rate.

Cheree
If you plan on staying put for a good length of time, then I would consider refinancing. BUT, a good rule of thumb is refinance only when you can get a full 2 point reduction in your interest rate. That would mean you would have to get a 4.75% loan. Also, MOST of the time a lender is not going to work for FREE. Hidden costs crop up all the time. You want to see a committment of ZERO costs to you if you should go ahead and refinance. Right now I believe it is borderline on whether to refinance right now. Personally I would not. Hope this helps out somewhat.

Dawne
oh yeah. I would. You could possibly get as low as 5.6.. You never know, and that would make a difference, even if it only lowers your payment a hundred think about how much interest you save! You would pay much more of your house off! Good luck!

Caroyln
Make sure that "at no cost" means that. If you owe $199k now, do they mean "no out of pocket costs", but you'll end up now with a debt of $205k???And how long will you be staying in the house matters as well.

Moon
Generally 1% is worth the refin. Keep in mind though, nothing is free. The companies that offer no closing costs, etc. merely add those to the cost of the loan.

Marvis
I doubt that you're going to find a rate low enough to make it worth the money to pay the re-finance costs.