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Serious question: Is this now a good time to refinance a home mortgage? Or should we wait until negative interest rates, which would surely set up the minimum p
by a3n 7y ago
Serious question: Is this now a good time to refinance a home mortgage? Or should we wait until negative interest rates, which would surely set up the minimum positive mortgage rates. Or does it become irrelevant to mortgage rates at some point?
- moneywoes 7y agoHow big are the fees involved?
- glial 7y agoTypically around 1% of the mortgage amount, I think?
- mathieutd 7y agoMortgage rates have moved surprisingly little. They usually trade at around a 2% premium over the 10-year government bonds for a 30-year fixed. Right now that would mean about 2.8% but my local bank quotes 3.5%. My guess is that spread is going to shrink over time but who knows. I'm waiting...
- edoceo 7y agoIt dipped last week, but popped back up from refi surge. I'm thinking to give a few weeks to settle. Hoping to see 3.0
- toast0 7y agoSetup a spreadsheet to show how many months it takes to payback the refi costs at today's rates. Then see how much lower the rates would have to go for the payback to be a reasonable number of months again. If you don't think the second one is going to happen, maybe wait for a bit lower before doing a refi, but who knows if it'll go lower. Other things to consider right now. If your job goes away, and it's hard to pay your mortgage, it might be better to be on an existing loan and not a new loan.