Is it good time to?

[argh2xxx]

Is it a right time to refinance your mortgage in USA? What states are best to refinance now? Is 4.0 fix interest rate is possible at this time and in what state?

Thanks all in advance, and much appreciate for your will be answers.

[nss_be]

Before you refinance, there are lot of questions should be answered like
1. what is the current interest rate?
2. what interest rate will you receive now?
3.what will the other cost involved? like orgination fee etc.
4. How many years are you going to stay in that house?
5. how many year do you have in the current loan?
6. Is there any prepayment penalty for the existing loan?
Its goes one...
I would recommend you to get the current rate from any of the sites like bankrate or something like that....
And also you can use the calculators available in mtgprofessordotcom site under calculators.. it will give you a right answer whether to refinance or not...
Hope this helps...
my 2 cents

[Codythebest]

Is there any place with 4% ??:confused:

I thought that if rates are around 6-6.5% , it will be nationwide.

Is it possible to have different rates from one state to another?

[OregonLO]

it would cost a great deal of money to get to a 4% rate. You can get in the mid 5% but not down to a 4% without paying to "buy down" the interest rate.

[argh2xxx]

it would cost a great deal of money to get to a 4% rate. You can get in the mid 5% but not down to a 4% without paying to "buy down" the interest rate.

Yep I guess you have to pay the fees like $3000 or more for buying down the interest rate if you want to get 4%.

Is there another way you can get 4% without costing you? What if you credit score is good?

[OregonLO]

well if the loan amount was around 100k you'd probably still pay more than $3000 to get to that rate. The only other way is to get a Hybrid Option Arm. You can make 4 different payments.

1. min. payment which is usually around a 4-4.5% interest only rate

2. interest only payment. which will be 3% higher than your minimum payment rate and will also be interest only.

3. 30 year fixed payment. Take the rate from your interest only payment and make it a fully ammortized and that is what your payment would be.

4. a 15 year payment. This is if you are trying to pay the loan off in 15 years.


To give you an idea we'll base the payments off of 100k


1. minimum payment = $333.33 at 4% interest rate and interest only

2. interest only payment = $583.33 at 7% interest rate

3. fully ammortized payment = 665.30 at 7% non interest only

4. 15 year payment = 898.83


now with a loan like this if you are making the MINIMUM payment you will be deferring interest. so on a 100k loan if you make a minimum payment you would be deferring $250 of interest every month. If the situation is right this loan could work for someone. It isn't a loan that I would just put everyone into but it is the only way I can think of even having a payment around 4%


One other thing about this program is that the payments are fixed for 5 years, so after 5 years you would want to refinance the mortgage or sell the home. Whichever you want to do.

[Lockett The Lender]

To answer this question adequately one would need a lot more information. However it is still a great time to refinance, but its going to depend greatly on your situation.

1. A 4% fixed rate is simply not going to happen, there are a few pick a pay options that will allow you to have a low introductory or teaser rate, of 1%-3% for a few months, but then you rate will raise and be variable.

2. You could buy down the rate but not enough to get you to 4%

3. You can check bankrate for rates but they are not exactly accurate because, bankrate and just about every other website of this nature will quote you a rate with optimal credit (680+), and money down (10%-20%).


FYI Bankrate is being sued. Bankrate is accused of knowingly carrying ads from mortgage lenders that offered unrealistically low rates that were never in practice given to borrowers in an attempt to lure them into more expensive deal.

4. Mortgage rates are national, but can vary state to state because of certain restrictions and state rules and guidelines which increase or decrease the risk to the lender.

5. Even with good, excellent, or stellar credit will you not be able to get a 4% fixed, without coming out of pocket or equity.