CNC Mortgage Blog

Enjoy these new rates, 15 year loans are near 4.75% and 30 year loan rates are near 5.375%!!

Ken Harney in his nationally syndicated column that appeared in the Minneapolis Star Tribune on Saturday, January 19, 2008 said that “now is a good time to refinance.” The rule of thumb has been that if you are going to drop the rate 1% it makes sense to refinance. That decision depends in great part on how long you plan to stay in your house, dividing your closing costs by your projected savings gives you an idea of how long it will take you to recover your investment. If you plan to stay in the house longer then it makes sense to refinance.

As the new loan amount gets smaller, you would need a bigger rate difference. In other words if your loan is $100,000 you might need a rate drop of 1.25% but if your loan is $400,000 a drop of .75% probably justifies de process.

Enjoy these new rates, 15 year loans are near 4.75% and 30 year loan rates are near 5.375%!!