Should we refinance?

[poe]

We’ve been in our home almost 1.5 yrs. Our interest rate is 5%. My H talked to a lender today and we could get 3.99 and we would save 300.00 a month. We could buy down the rate to 3.5 for 4,000 and save 81.00 We are planning on staying for at least 10 more years if not more.
I’m not good at this but I HATE paying 5%, would it be worth it to refinance?


Edited to add that the rate went to 3.875 after running our credit...

[HitchedIn2006]

I would shop around with a few local banks and credit unions to see rates and fees. I’ve been pleasantly surprised by my local credit union!

[aksinger]

I would shop around, too. We’ve gone with our local credit union for the purchase and multiple re-finances that we’ve done. We did re-fi last fall from 5% to 3.75%. It cost us somewhere $3000-4000, but we’re saving almost $400/month so we’re able to recoup that cost pretty quickly. We had last re-financed in November 2018 after a large construction loan rolled into a new mortgage for a large addition, so we kept it at 30 years and only added 10 months on to the last mortgage. Also look into 15 and 20 year loans, the previous re-fi we did in 2015 we switched to a 20 year. We couldn’t do that after the addition, so I’m a bit bummed at being back at 30 years, but that’s what it took to get the desperately needed addition.

[madisen]

Should you refinance? I love the mortgage calculators at dinkytown.com to help you answer that question definitively with numbers according to your scenario, but based on what you wrote here, I’d say yes.

Definitely shop around and look at bankrate.com too.