Aziner's, I currently have a 30yr fixed @6.375% for 350,000 and would like to refinance in the next month or so. From what I understand, the fed's slashing their rates doesn't really affect the 30yr fixed rates, but I do see offers floating around 5.45 - 5.65%

The general rule of thumb I heard is to refinance only when you could get about 1.5 to 2 points off your current rate, but is it true? Is it not worth to refinance at say, 5.45?

TIA.

 

Basically you have to compare what your savings is versus paying the closing costs on the new loan. I am in the mortgage business and with todays .75% rate cut I would advise you to wait.

 

I think the market is expecting another cut next week. Wait another month to see what is up.

 

How many years (or months) have you had the existing mortgage? Have you paid any extra principal?

In addition to what Lotus said, do the long term math to see if extending your loan will make you pay more at the end. If you can afford the payment now, would you shorten your term? Pay extra principal? Spend it?

 

There are refinance calulators online for that... goto bankrate.com for example:

http://www.bankrate.com/brm/calc_vml/refi/refi.asp