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To refinance or not to refinance?

By
Real Estate Agent with Realty Austin 423102

Ever thought about whether you should refinance or not? Rates are historically low. See the chart below

Most property owners look at the low interest rate and/or lower payment, but don't know that there is an amount to do the loan ($3,000-7,000) that is added to the loan amount of your refinance. Also, consider that if you originally got a 30 year loan and you have owned the property say five years than when you refinance with a 30 year loan you will pay the five years of interest all over again unless you drop it to a fifteen year loan. A past client called me yesterday to get my opinion on refinancing his property that he has owned for 10 years. Once I told him that he only has 20 years remaining on his note and that if he refinanced back to a 30 year note he will pay 10 years of interest all over again. He said "no thanks"