Is a lower interest rate worth the closing costs?
November 26, 2008 11:28 AM Subscribe
Interest rates are down, so my mortgage broker contacted me to see if I want to refinance. I'm under the impression that every time you refinance, you lose value in the house, so is this a good idea?
posted by MtDewd to work & money (12 answers total) 7 users marked this as a favorite
I'm only 16 months into a mortgage @6.75%(fixed, 30-year) and am being told I could get one @ 5.625%(also fixed, 30-year), saving $150/month. Closing costs are around $3000. This sounds good over the long run, but is it really?
What's the money angle? Who is making money here, and who isn't?
Bonus question: my wife thought if we were refinancing anyway, why not get another $10K to fix up the bathroom (and only saving $100/month). Is this a worse idea?