by Alli Z from San Antonio, Texas
Ask Kate: When is it smart to refinance a home mortgage My husband and I bought our house in December 2006 with a 6.25% 30 year fixed rate, $200,000 loan with no points. We put 20% down, and with our renovations we estimate we have $60,000 to $80000 in equity.
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We plan on owning the home for the next 10 to 15 years, when we plan to downsize once the kids graduate.
We recently found we could get a 5.25% rate, with no points and around $2000 in closing costs that could be rolled into the loan.
This would bring the loan back to nearly the $200,000 mark. Is one percent difference enough of a savings to refinance?
"There are few things in this life that equals the sensation of being paid up." --Kin Hubbard, Abe Martin's Primer, 1914
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