Current lender is offering me an IRRRL that’s the best offer I’ve gotten so far. Purchased home in August 2023. Currently monthly payment is $2635 (that includes escrow), at 6.625%. They are offering 5.25% which would drop payment to $2345 but my loan balance would jump about 12k. This is all according to the little “personalized” sheet I got emailed to me. Realistically, we will probably be in this house another 2-3 years. Does this seem worth it? We are in an area that’s sustained rapid growth over the last 5-10 years and is continuing to grow rapidly so no concerns with property value when it comes to selling in a few years.
Posted by MacDaddy228
1 Comment
No. You’ll probably refinance again in less than 12 months, so why add so much to your loan amount? You won’t break even by the time you refinance again. Rates are just starting their slide. If you really must refinance right now, go for a rate that’s a little higher that not only has 0 points, but also includes lender credits to cover the third party fees. Get your refinance as close to $0 cost as possible. The next time you refi might present an opportunity to buy points and go for the lowest possible rate, but right now isn’t the time for that.