Refis are hot right now.
 

I just locked at 4.625% for 30 years. No points low closing costs. Chase even has 4.875 up on their website as the rate.

The lender required a credit score above 730, equity above 20%, and income requirements, but if you are in good shape you can get a really low rate.

Wow, that's pretty good. I just refi'd around Feb., but I'm going to have to look into another round.

How much are the fees associated w/ refinancing?

Depends on the size of your loan because mortgage deed tax and origination fee are calculated on the size of the loan.

Generally can be $4000-7000 on the average loan so you have to do a cost benefit analysis to see if it is right for you.

My refi will cost me $4800 in fees, but I get back $700 on my taxes for the discount point. Out of pocket is $4100.

I plan to keep my payments the same and pay off sooner, but my interest expense saved works out to $36,000 over the life of the loan. Now I will lose a third to taxes because this expense was deductable so I will get in reality $24,000.

The you can do all you present value stuff, blah blah but I am rolling the $4100 into the loan. I'll save $20k over 20 years. Worth it to go through an hour of paper signing.

I hate to be the bearer of bad news, but for a refi discount points must be amortized over the life of the loan. So if you closed today, you'd get about just under a dollar in tax benefit ($700/360/2) for '08.

I hope that doesn't make or break your cost-benefit analysis!

My personal philosophy is to never pay points on a refi. (I don't recall ever paying them on an original mortgage either)

True, I amortized the last one but my amortizing only lasted three years and then I moved so I got a big bump the third year. On my first refi, I did not know about the amortizing rule and the irs did not catch it. Not sure if it is a flag now in the computer.

I think there is a typo in your original post. You LOCKED in a 4.65% rate for 30 years? Do you mean you locked in a 4.65% rate on a 5year term amortized over 30 years?

The longest term mortgage obtainable in Canada is 7 years to the best of my knowledge and even the 7year thing is fairly new.

4000-7000 dollars to refinance a mortgage? That is crazy! I work for a bank and I refi mortgages here in Canada for $439 and I can even pay that for you at the sacrifice of a tad higher interest rate. 4000-7000 must be with a penalty and a crazy penalty at that. Canada mortgage break penalties are 3months interest FYI

It is hot but with prices of homes dropping. You better hurry before there is little to no equity to refi.

but then again just 4 months ago I was allowed to sell 40 year amortized mortgages with a $0 downpayment. Funny thing is you didn't even really need good credit. Just a "C" or better... not sure what that converts to in beacon score though. Give it a year or two and the mortgage market in Canada will being to unfold like that of the USA.

:rofl:
very true!