My home loan has interest at the rate of 6.125%. With interest rates dropping, is it worth it to refinance?

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2 Responses to “My home loan has interest at the rate of 6.125%. With interest rates dropping, is it worth it to refinance?”

1. RM on: 24 July 2009 at 4:48 pm

   Right now the lowest you can get without paying points is maybe 5.625%. The closing costs on loans are too high to see any benefit to that. 6.125% is very excellent (consider rates were 14% back in the early 1980s).

   Rule of thumb is that you should lower your rate at least 1.5% to make refinancing worthwhile. Preferrably 2% or more.
2. My home loan has interest at the rate of 6.125%. With interest rates dropping, is it worth it to refinance? on: 24 July 2009 at 6:30 pm

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