My current mortgage is at 4.05% APR. I have been seeing people refinance for rates in the low 2% range. The last time I checked with my current mortgage company their best rate for a VA loan was still over 3% and wasn't worth refinancing. I might be better off now to go to a 15 year mortgage, or at least not go more than 20 years, which is how much time I have left on my current mortgage. What company did you use? I don't trust these things that pop up on FB (like Quicken and similar places), most of them seem like shysters to me. Any amount I can lower my monthly payment due to paying less in interest is a net income increase...
I know from your past posts that you are pretty smart with finances so my reply based on the same.
I know the feeling, kind of like a catch 22.
We have a 3.87% which we refinanced in around 2015 from roughly 7% no doc original in 2006.
We really dont have much left on the morgage which wasnt all that much compared to what we bought when we moved south in 2006 and actually pay double (and more) the principle in extra payments every month.
Anyway, out of curiosity we too have seen those low rates mentioned, not as big a deal to us but what the heck, we too looked into them.
We didnt go crazy over it but yes, seemed enticing, so a few phone calls AND the fact that I now work for one of the largest banks in the country, we found the APR for 15 year refi didnt match up closely to the actual rates we were seeing advertised.
I also suspect much of the public doesnt understand the difference between the rate and APR.
So anyway, between the bank I work for which also gives me an employee discount on the rate AND our other national/ local pretty well known bank which currently holds our mortgage the banker who did the original refi couldn't make the difference work between the 3.87 rate we were paying and the 15 yr wifi rates.
One of those truly good bankers who worked up both current mortgage and what the new refi would be, keep in mind he makes living like this and even showed how it wasnt worth it. Keep in mind we repaying more then double the principle every month in extra payments. Also take into account the tax write off which also factors in.
In your case though, you a little bit higher then the 3.87 we have and everyones situation is different when talking such low rates, anyway, I am sure you know to keep the actual cost of the refi and not just the rate but the actual APR.
Side note - when we rate shop we are a prime borrower to lenders so the rates we see we get which is always the lowest possible and even with that it wasnt worth it to us.
Also when we refi the only purpose was not lower the payment OR BORROW MORE MONEY !!!! *LOL* but to pay off the loan faster. Meaning any money saved form the refi which was huge going from 7% ish to 3.87 went right back into the mortgage to pay it down faster.