Is it worth refinancing?

[Ouman You]

Hi guys,

Asking for a friend and he needs guidance if you can help.

original mortgage 164k with 3.8% interest rate 30 year term, credit line 126k 3.2% interest rate. the house has a 3 million dollars equity. Is it worth refinancing to lower the payments? if Yes, how to find the best rates?

Thank you,

[Alecia Loveless]

@Ouman You I’m probably not the one to ask but I think the thing to do would be to look at a mortgage calculator and figure out how much interest was going to be paid under the original term.

Then contact whatever bank you wanted to use to refinance with (personally I prefer my local one where I keep my money but not everyone keeps theirs locally) and find out approximately what the new interest rate would be.

Then use the mortgage calculator again and see how much the interest would be with the new rate.

Subtract the new amount from the first amount.

If it is a lot more than it would cost you to refinance the home with whatever payment, attorneys fees, closing costs, points, etc are required then you should refinance it. If it’s not that much more or less than the costs don’t refinance it.