Hi guys,
In January I took out a $440,000 30 year loan at 4.875%.
With the recent fall in interest rates, I asked my lender about refinancing. his rates are:
$440,000 at 4.375% with $2200 in closing costs. (Loan amount is approximately the same because I've only made 1 payment so far)
With the refinance, I will save $132 per month, which means I will break even on the closing costs in 17 months.
In my limited understanding, this sounds like a good idea.
Am I missing something?
I keep seeing 'no cost refinance' from others. How do those work, don't the closing costs have to be covered by someone?
In January I took out a $440,000 30 year loan at 4.875%.
With the recent fall in interest rates, I asked my lender about refinancing. his rates are:
$440,000 at 4.375% with $2200 in closing costs. (Loan amount is approximately the same because I've only made 1 payment so far)
With the refinance, I will save $132 per month, which means I will break even on the closing costs in 17 months.
In my limited understanding, this sounds like a good idea.
Am I missing something?
I keep seeing 'no cost refinance' from others. How do those work, don't the closing costs have to be covered by someone?