Should we refinance from 6 1/8 interest rate to a 5.5 interest rate on our 30-year fixed rate loan?

Answers:4   |   LastUpdateAt:2012-11-05 22:16:02  

Question
tim
Asked at 2012-08-14 06:38:04
the value of the house : $ 600,000
Loan Amount : $ 477,000

Our loan officer said it's worth refinancing if you get a rate of 5.5 % or less. But we have no cash for closing costs of $ 5,000 ... suggested making a seprate HELOC to cover closing costs . Is this worth it? Or should we continue our 6 1/8 % rate ?
Answer1SiennaAnswered at 2012-08-14 18:45:34
A lower fixed rate is certainly better, but I would wait until you have the cash for closing costs .
Answer2pandaAnswered at 2012-08-17 03:46:05
Do not borrow money to borrow money . Concentrate on getting your financial house in order.

TIP : If you own a 600K house and have 5K in the bank, you're in trouble . You are " house poor"
Answer3Japan_TokyoAnswered at 2012-09-13 14:30:05
It would take a long time to recover $ 5,000 over the amount you would save each month / 4-5 years maybe? - And if you do not have the money up front , the point is moot - you can refinance and get enough cash to pay closing costs (do not remove any more) ?
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