Refinancing question - currently at 7.25 30 fixed and NBKC just quoted me 5.6 no points

A few more rate cuts getting into the 4s for mortgages would save $125 more? Maybe by 1st quarter of 2025. Not sure how long that would take, but 5.6 seems solid right now.

Wait till after Weds


No impound account or do you waive it?

Feel like there's more rate cuts to come this year even though mortgage rates have clearly already priced that in somewhat it seems.

7.25 to 5.6 is a healthy drop though, certainly worth doing, the question is by February maybe if you can do 4.8%-4.9%..or even low 5s would you regret the 5.6% now?

It doesnt matter who is elected president, its not going to change the rate cuts upcoming at all. Some will be before the new person ever even takes office.

Dont know why so many people relate the president so much to how the economy is doing, they have very little impact typically speaking. About the most impact I've seen ever was doing covid and thats a pretty big one off.

I cant say if we will or wont ever see 3.something % rates again but keep in mind those were HISTORICALLY low rates. Even if we got back to 4-5% range that would be great and its headed that direction. Rates have been falling pretty consistently over the summer months:
LINK

No looks pretty typical

A little more patience and you can be in the 4’s

I'm early retired a few years back at 62 with no worries. I got married and new house in 1998. 30 yrs at 7.5%. I thought I had stuck my neck in the noose. Here's my two cents.
Do it, and do it now. See if you can roll that 3K into the note. Nothing seems out of the ordinary, it does cost money to do anything. Yes, the interest rates may go down and you can keep paying that 300/mo waiting on that to happen, if it even does.

I refinanced that note in my situation about 4 years later at about 5.5%, something like that. Then did the final refinance at around 4% and paid off the house within about 17 years.
The more important question I'd have is,what are you going to do with that extra 300 bucks/mo? We don't know your finances or financial discipline.

my suggestion, and I know you didn't ask, but I'm on a roll here,
1) Build 6 months of expenses in a cash back-up incase you lose your job..
2) Pay off highest interest loan, credit card, whatever debt.
3) if possible max out your 401k and contribute to non-working spouse IRA or roth.
4) all above handled, then pay extra on the loan. FYI, Rule of thumb...If you made one extra principle payment each year, you would pay off that 30 year note in 23 years.

interest rates may come down again as it did with my situation. If you can get another 1.25 or better refinance in a year or two or when those numbers hit., Do it again if possible, and then that'll probably be as low as you can get. Takes at least 1% to make it worth the refinancing cost and reset of loan duration. Remember you reset the clock when you refinance.
Good luck.

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A little more patience and you can be in the 4’s

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What would upset you more:

1. You refi and rates subsequently go down another .5%
2. You hold off on the refi and rates go back up .5%

Understand that you're gambling either way, so just pick the one that would sting less. If they will sting equally, then flip a coin.

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Whats funny about that?

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4% is not realistic. It may happen, IDK. But historically 4% is not realistic to expect, hell 5% is not really realistic.

Here's reality that I've realized as I've gotten a little older. 4% is barely enough yield for private equity to make money on. So 4% is just not realistic. 5% is really closer to the break even point, 6% is good, and 7% plus is where people start to get really happy and diversify out of equities and into bonds.

If we get back to 4% somehow everyone should jump on it.