Consumption and Real Estate
i have five years left on a 10 year fixed rate mortgage at 5.125%. can i refinance now at lower rates?
Question : i have five years left on a 10 year fixed rate mortgage at 5.125%. can i refinance now at lower rates?
I want to take advantage of lower interest rates. I currently owe $ 86,500 on my mortgage. I have five years left on a ten year fixed rate mortgage. is there any type of mortgage out there that would be available to me that would let me achieve this goal?
refinance mortgage rates
Best answer:
Answer by surojabu
Why would you want to? You’ll have the mortgage paid off in 5 years. I’m assuming the loan does not have a balloon payment or similar type agreement at the end of the 10 years which would prompt a person to refinance. Anything you do to refinance will just make you owe more on the loan due to fees, etc. It really wouldn’t be worth the drop in interest. Plus you have an excellent rate, even by the present economy’s standards.
Probably doesn’t make financial sense to do this. Your loan amount is low and the new interest rate MUST be a full point lowe, if not 2 points, to make sense. You will pay off your loan in 5 years, and probably won’t break even on the closing costs by that time with these facts.
Better for you to make some extra payments of principal on this loan then to do a refi with all the costs.