Andrea is with us in Grand Junction hi Andrea how are you hi how are you doing Better than I deserve what’s up I just Wondered if you could walk me through How I would know if it’s beneficial to Refinance our mortgage if the interest That you would save as a result will Repay the closing cost within a couple Of years so let’s look at it what is Your current interest rate 4.25 okay and You can probably get let’s say three and A quarter let’s say you could say for One percent okay so what is your loan Amount One hundred and sixty four thousand Okay so one percent is sixteen hundred And forty dollars does that sound right Okay and so what are your closing costs I’m not sure I haven’t actually talked To anybody I just know there’s a lot of Let’s pretend about it’s pretend they’re Three thousand two hundred dollars just For fun okay And if you save one thousand six hundred Dollars a year in interest as a result Of refinancing but your closing cost was Three thousand two hundred dollars it Would take you two years to break-even Does that make sense Thirty two hundred divided by sixteen Hundred is two you follow me okay And so after two years you’re making Sixteen hundred dollars a year until Then you’re in the hole so if you’re
Gonna stay in the home three years it’s Probably not worth messing with if You’re gonna stay in the home seven Years it’s gonna be very beneficial if You’re gonna stay in the home 18 months You’re gonna lose money from having Refinanced using this using the example We came up with okay your closing costs Might be a little more they might be a Little less but they’re probably fairly Close to that on one hundred and sixty Thousand dollar loan it’s not that huge Alone so but you know so you probably Have somewhere around a two-year Break-even period how long are you going To stay in the house Right now we don’t have any plans to Move we like the area that we live in And we have a lot of family here and we Have a pretty steady job sometimes so You think it’s probably a five to 10-year plan anyway right yeah so you’re Gonna make some money Having refinanced if my closing cost Estimate is fairly close okay then you Put on 15 year fixed okay okay and no Need to pay any points it doesn’t help Anything okay thank you so much yeah go Zero points but you’re what we did there Is called a break-even analysis how long Does it take you to break even on your Closing costs and are you gonna stay in The property longer than that date and I Think you will I think you’ll make money
I think it does make sense to refinance In this situation hard to believe folks Were in a world where we’re talking About refinancing a 4.25 percent Mortgage and it actually makes sense That’s a weird world of these rates have Ticked back down they were up for a Little while and they they’ve climbed Back or they climbed they drop down Slipped back down they’re not way down But I mean they were at four to five Just 20 minutes ago feels like and They’ve come back down in the threes Again and I get a daily quote sheet from Churchill mortgage and so if you’re you Know looking to refinance those numbers I’m giving you or real and all the 3200 Is not real I made that number up I Don’t even deal what a refinance costs Will be I have an idea but it’s I don’t Know exactly so but the interest rates That’s where they’re hovering is down The low 3s right now on a 15-year Fixed-rate mortgage on a Fannie Mae now We don’t recommend FHA we don’t Recommend VA much more expensive but a Traditional conventional 15-year Fixed-rate check Churchill mortgage they Can help you with the folks
