Is this the right time to refinance?

[m3rge]

Hello Ficoer's!

I currently own a joint Rural Loan which I pay 625 monthly at 5% fixed rate for 30 years. I been paying this perfectly for 3 years. 

I don't have any problems with the monthly payment but I'm also looking for posibilities on refinance if I can get a lower rate (3% should be amazing).

What would be my refinance methods for my Rural Loan? Is it convenient in the currently economic situation with banks?

Thank you everyone!

[djacks]

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@jorgevazquez87 wrote:

Hello Ficoer's!

I currently own a joint Rural Loan which I pay 625 monthly at 5% fixed rate for 30 years. I been paying this perfectly for 3 years. 

I don't have any problems with the monthly payment but I'm also looking for posibilities on refinance if I can get a lower rate (3% should be amazing).

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You won't see anything in the 3% range anymore unless you are willing to maybe do a 15 year loan instead of a 30 year loan.

[m3rge]

Thank you for your response. 

What would be a "win" situation for a refinance if I'm sitting at 5%?

[HoldingOntoHope]

Most conventional advice would say to refinance only if you can save 1% or more on your interest rate. But in truth what you have to do is look at your own individual costs to accomplish the refinance, determine how much monthly savings you get and then figure out how many months it takes to at least break even. If you are sure you intend to keep the property that long then it makes sense.

Like the poster above said a 3.X rate is only going to be on a 15 year refinance now. A 30 year loan is probably going to be 4.X depending on how much you are willing to pay to buy down the rate if anything. With closing costs you will probably be looking at 8-10 years to hit an upside to a refinance at current rates. But that is just an estimate based on my own refinance costs of about $5K. If your costs are less then your time frame could be less.