Refi's depend on a few things, first of all, how long do you plan to own your home, and will the refi costs be paid for in that amount of time by the lower payment. THe penalty is just another added cost to your calculation.
I can't refi because although I asked for a non-penalty loan, all my broker offered was a penalty loan (about $4K penalty), which matched the rates on the non-penalty loans I found, but then he offered to pay all costs. With much reluctance I took the loan, and saved about $2500 in closing costs. So in my calculation, I could take the 4K penalty and subtract it from the 2.5K costs I didn't have to pay, and say the net of the refi penalty would be 1.5K. But since I already spent the 2.5K, it would feel like 4K, so I'll just sit tight with my 7.25% no point, no cost loan, and grumble about how I should have told that SOB to stick that penalty loan.
PM me if you want to discuss this more. |
