03-22-2011, 05:28 PM
That's what we did. I think it's a no-brainer if you'll keep your house for at least a few years and you can swing the higher payment. Bear in mind that since your interest rate will go down and your principal payments will go up that you'll have a little less to deduct from your taxes.
You should only take a loan with fees or points if you're buying. For a refinance you should ONLY look at no fee no point loans since none of those fees are deductible. Most lenders will likely require you to pay an upfront refundable deposit though, usually around $300. Shop around. I'd suggest checking with Provident Funding* and if you're in No Cal check Fremont Bank (currently 4.25% http://www.fremontbank.com/personal/loan.../index.asp ). After checking the banks and regular mortgage companies (remember, NO FEE loans only), be sure to check with a mortgage broker. They might come up with a better rate than you can find.
*Note that on Provident Funding you can approximate a no fee loan by looking at the loan with one increment of negative points beyond the zero point loan on this calculator https://www.provident.com/Origination/In...sCalc.aspx .
You should only take a loan with fees or points if you're buying. For a refinance you should ONLY look at no fee no point loans since none of those fees are deductible. Most lenders will likely require you to pay an upfront refundable deposit though, usually around $300. Shop around. I'd suggest checking with Provident Funding* and if you're in No Cal check Fremont Bank (currently 4.25% http://www.fremontbank.com/personal/loan.../index.asp ). After checking the banks and regular mortgage companies (remember, NO FEE loans only), be sure to check with a mortgage broker. They might come up with a better rate than you can find.
*Note that on Provident Funding you can approximate a no fee loan by looking at the loan with one increment of negative points beyond the zero point loan on this calculator https://www.provident.com/Origination/In...sCalc.aspx .