Refi from 3.875 to 3.125

[ssmuff]

Seems like a decent deal even with a payback period of 16.3 months. I just purchased the home in March and now I have a chance of getting a 30 yr fixed rate of 3.125 with no points. Closing costs are estimated at $2,533 with a credit of $377. Main question is do you think rates will keep dipping or am I being to greedy? Take the 3.125 and be extremely happy in 5 years when rates are 6%+?

[BrianC]

Those costs seem high...or the lender credit is low. Many lenders are covering almost 100% of fees. Have you shopped around?

FWIW, I refinanced about six months ago to a 15yr @ 3.625 and it cost me about $700 total. I'm about to refi again @2.75 (also 15 years) but lender is covering almost everything - I'll be out less than $200....but the lower rate is saving me $160 per month.

[BAM6I4]

1st off....where are you getting 3.125% for 30years?!!? That's awesome, I do want.

2nd...those fees do seem ridiculous!! Maybe they are buying the rate down?

I've refi'd 3 times and most I paid was about $1800 least I've paid is about $700.

I am currently debating on refinancing again, most likely would be the final time unless the world is coming to an end and rates get stupid low.

Currently at 4% fixed for 30year and going to a 2.75% fixed for 15 year.

[ssmuff]

That cost is actually pretty standard for the area (Wichita,KS). I am dealing with Kansas state bank. I think I could get a zero cost refi but my rate would be 3.5 and with a lower rate over the 30 years will out way the up front cost. I will actually pay the same amount just have the excess go towards principal.