http://frugaldad.com/2009/06/01/refinancing-a-home/ Promotional Codes, Coupons & Deals + Money Saving Insights Fri, 25 May 2012 07:48:33 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://frugaldad.com/2009/06/01/refinancing-a-home/#comment-25720 Paul Van Lierop Tue, 02 Jun 2009 18:41:24 +0000 http://frugaldad.com/?p=2783#comment-25720 I'm currently in the middle of a refinance it has taken forever.... 8 weeks to this point but my home is underwater or close to it. The Making Home Affordable plan is allowing me to refi without an appraisal and I'm getting the same rates as everybody else. Finally a government program that is working. Check out http://makinghomeaffordable.gov for more info if your loan is a Freddie Mac or Fannie Mae you could easily qualify. This is an official government site I promise. A 1.5% drop in interest rates is definitely worth my time. Good luck all. I’m currently in the middle of a refinance it has taken forever…. 8 weeks to this point but my home is underwater or close to it. The Making Home Affordable plan is allowing me to refi without an appraisal and I’m getting the same rates as everybody else. Finally a government program that is working. Check out http://makinghomeaffordable.gov for more info if your loan is a Freddie Mac or Fannie Mae you could easily qualify. This is an official government site I promise. A 1.5% drop in interest rates is definitely worth my time. Good luck all.

]]> http://frugaldad.com/2009/06/01/refinancing-a-home/#comment-25644 Edward @ IllSaveYouMoney Tue, 02 Jun 2009 04:38:38 +0000 http://frugaldad.com/?p=2783#comment-25644 It's definitely a great time to refinance right now for those who actually have equity in the house. Unfortunately, the number of underwater home owners is rather high and if you owe more than your house is worth, you can not refinance. If you have the equity, if you're getting a lower rate than you have now, if you have the upfront refinancing funds and plan on living in the house for long enough to pay for that refinance fee and make a positive return -- do it now as rates are very low. The way you can generally see when it will pay off is calculate your break-even point. Here's a hypothetical example. If you have a mortgage at 6% currently and you are paying $2,000 a month mortgage and you can refinance at 5% and say your monthly payment goes down to $1,800 as a result your net savings are $200 a month. Now you must take your refinance cost, say $3,000 and divide the $200 into it to find your break even point. $3,000/$200 = 15 months to break even. It’s definitely a great time to refinance right now for those who actually have equity in the house. Unfortunately, the number of underwater home owners is rather high and if you owe more than your house is worth, you can not refinance. If you have the equity, if you’re getting a lower rate than you have now, if you have the upfront refinancing funds and plan on living in the house for long enough to pay for that refinance fee and make a positive return — do it now as rates are very low. The way you can generally see when it will pay off is calculate your break-even point. Here’s a hypothetical example. If you have a mortgage at 6% currently and you are paying $2,000 a month mortgage and you can refinance at 5% and say your monthly payment goes down to $1,800 as a result your net savings are $200 a month. Now you must take your refinance cost, say $3,000 and divide the $200 into it to find your break even point. $3,000/$200 = 15 months to break even.

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