Mortgage Rate Refinance Story

by Michael Grella
(Huntington, N.Y. USA)

Ask Kate: Mortgage Rate Refinance Story Kate, My story is about owning my house since 1996. I financed with a 30 year fixed rate mortgage. Back then my 7% mortgage rate seemed like a great deal but who knew what was going to happen to the housing market?


At first I thought current interest rates were a little high but just days before my mortgage rate lock, mortgage rates trended higher. So I considered locking at 7% a good deal.

The appraised value of my home was only $156,000 back in 1996. 2008 rolled around and I knew my house was worth more but the thought of refinancing just hit me the wrong way. Still I considered my options.

Would I be staying in this home for many more years? The answer was yes.

Could I lower my mortgage payment with the available rates? Yes.

Were there mortgage closing costs? That was a yes as well and the only thing that I dislike about refinancing, giving away that much money to do paperwork. Reluctantly, I proceeded with my mortgage rate refinance.

Able to refinance my home loan and lock in an interest rate of 5.25%, I was saving hundreds of dollars a month in interest. So the mortgage closing costs would break even very quickly since I planned on staying in my home for years to come.

In my opinion, right now is the best time for a mortgage rate refinance. I think the housing market has just about bottomed and rates will not be this low in the near future.

Lock in these low mortgage rates now while you can because in my opinion they will not be here much longer.

After my new refinance, the appraised value of my home was $425,000. A little lower than it was a couple years ago but a huge increase since buying it in 1996. So yes, go for a mortgage rate refinance now. You will be happy that you did.

Kate Answers: Mortgage Rate Refinance Story

Hi Michael,

Thanks for sharing your story. Isn't is incredible your appraised value increased from $156,000 to $425,000 in 12 years?

Best Wishes,




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