My banker says that if you can't drop a whole point, a refi isn't worth it.

That's what makes sense to me also.



I currently have the mortgage on a 20year, was more interested in a lower rate as opposed to term length.

I refinanced the the HARP program a couple years ago. Went from 6.875% to 4%. No closing costs which is the biggest part. I don't know if they still have this program or not.

You did well.

Pay it 2 times a month, So if it is a 1000 a month pay 500 every 2 weeks. Look it up on internet on how much you can save doing that.

That’s what I do anyways, even after I refinanced.


The problem with people saying to pay extra without refinancing- it’s all good and well if you actually do it... otherwise you’ll be at year 19 or year 29 saying “Damn, I wished I would have refinanced way back then.” Or “ Damn, I wished I would have actually payed extra every single month.”

At what age have most of you paid off your house or what age will it be payed off on your current mortgage?

Looking to revive this.
I currently have $69,XXX remaining at a 4% interest rate with 18 years remaining on my condo.

My credit score is about 805ish and my only debt is the $69,XXX owed on the mortgage.

Does anyone have a condo refinancing lead for me?
I would like a 15yr mortgage around 2.5-2.75%.

Thank you.

You're that close, why refinance? Just pay a bunch of extra on principal.

For most people, if you don't have to pay more, you won't. "Something" always comes up

I refinanced a while back and went through a normal bank. I did not have to pay closing. The only thing I have to do over a regular mortgage is I pay my own taxes and insurance. In my opinion that’s not a bad thing

Right now I don't have an escrow account and prefer it that way.
Property tax runs about $450 and exterior insurance runs about $450 also.

Lots of info being thrown around...BAD info, or uninformed at the minimum. Even from some that think they are super brains. The easiest answer is to stop going by the rule of thumb of dropping one or two whole points and just do the math. Once you do that, there’s no arguing with the results on whether or not it will be a good move. A simple amortization spreadsheet will tell you how long it will take you to recoup the costs, before you actually start saving money.

The one thing that nobody has mentioned to the OP is how long to you plan on keeping the place? You seem pretty young and while I may be completely off-base, I doubt this condo is going to be a permanent home for you. How long you plan to own the condo definitely plays into the refi equation. $69K on a 20 yr at 4% has a total mortgage cost of $100,350 and a payment of $418/mth. $69K on a 15 yr at 3% has a total mortgage cost of $85,740 and a payment of $477/mth. The difference between the two total cost ($14,580) divided by the 15 yrs yields an annual savings of $972. Assuming closing cost of $2,500 and you'll also have to get a new appraisal since yours is over 1 yr old, lets say the total cost to refi will be $3,000. Not factoring in the time value of money, you'll have to stay in the condo for a minimum of 3 yrs and 1 month, just to break-even on the closing costs associated with the refi ($3000 closign cost divided by $972 annual save). 3+ yr ROI on a refi is not a good use of funds.

I'm in the process right now. IF we are able to sustain our plan (paying an extra $3k a month), we will pay off a 30 year fixed mortgage in less than 10 years (actually by November of 2027) and save 210k in interest alone. If I only did a refi to drop my interest rate and stuck with 360 payments, I'd still save around $85k. For us this is a no brainer, but the stars aligned just right. I don't think everyone's situation would benefit from a refi, so I'd recommend doing the math. I'm happy to share my actual numbers if anyone is interested. Here's a website that offers are pretty good amortization table along with an option to add extra payments: BankRate.

I realize this is an old thread, but the gentleman that was around year 14 of his mortgage...ouch. He is just starting to cross over to the point where he'd be paying more toward principal instead of interest. Typically that's a no-go, but there are a ton of variables in every situation.

Pm Sent

Great post abolt300. That's what the numbers say for sure. I'd be interested to know more about his situation to see if there is more in play than just the math for him.

That was the information he needed. My only question is do condos get same rates as homes? I know a bunch of people that have refinanced recently at the 2.65-2.75 range on homes (abolts numbers used 3%)

As long as it's a primary residence and not a mobile home it should be the same rates. At least it is at our Credit Union.

I do plan on keeping the condo long term, at least that's the plan currently.
With the direction Auburn is going and the vet school being pretty close, vet students would make great tenants.
Someone spending all that time, energy and money to put Dr. in front of their name doesn't have interest in trashing a place.

Well crap, I've just hit a roadblock I completely forgot about.
The credit union paid the closing costs on the condo when I bought it. Original closing costs were $1,160.
They rightfully so have a 36month window that if I move the mortgage within the first 36months,I have to pay the closing costs.

Looking like I'll be holding tight until about this time next year. Who knows maybe refi rates will be solidly into the 1% range.

Condo in Auburn huh? So uh, you want to sell?