gregorygarver.com

PYT · Joined: 10 Jun 2005 Posts: 8

I was in an ARM with a 9% interest rate and it was going to chnge that next month, so I rfinanced to a 8.875% rate. Now, I found an even better deal with conventional loan at 6.875% rate for 30 yrs adn 3224 in closing costs. Should I do it again so soon? And what are the repercusions, if any? Are closing costs tax deductible?

SeanM · Joined: 04 Nov 2005 Posts: 6

I believe you have to wait at least 90 days to refi. Your mistake was doing a refi for less than .25% in the first place.Talk to a reputable lender.Good luck!

IsmaelJ · Joined: 25 Nov 2003 Posts: 6

You refinanced to reduce your rate one eighth of a point ? That did not make a lot of sense. You are advised to check the terms of the most recent loan to determine if there are prepayment penalties. My guess is that there ARE such penalties, which will factor into your decision. You may discover that any savings to be had will disappear when you pay the early termination penalty.As far as closing costs go, they are not tax deductible, save for any 'points' involved in the transaction. Points are considered to be prepaid interest and are deductible. Other closing costs are not.

NicoleCRN · Joined: 01 Jul 2005 Posts: 4

Two points over 30 years......for $3300.........it would be better to refi. We don't know the terms you are currently under...you'd have to read them.Also, do NOT go to the place you just refi'd your mortgage. They didn't do you any favors last time.

csusb_girlie · Joined: 12 Jan 2006 Posts: 4

Make sure you have no early prepayment fees attached to your current mortgage. Then ask yourself how long you expect to keep the house. If you expect to live there indefinitely, the refi will be worth it. If your 8.875% loan is an ARM, then refi to get the fixed rate.

SoCal · Joined: 01 Apr 2007 Posts: 8

That is sad that someone took your money like that to reduce your rate by such a small amount. Unless you desperately needed cash out of your home, something seems way wrong with that situation, especially if you can now qualify for a rate of 6.875% after such a short time.It's probably a good deal if you are really going to get that rate, but if you are "bait and switched" into different terms, walk away... actually run away. The repercussions are that all of the money or equity used to refinance last time were wasted if you refi again so soon. You will need to talk to an accountant about the tax deductions, most of the fees will not be deductible.