As long as you are comparing apples with apples and oranges with oranges.
If you go to an adjustable from a fixed, the rate will drop, but in the long term, the amount of interest may go up. It also depends on whether you go from a 30 (monthly) loan to a 22 year loan (paid bi-weekly).
Also, beware that you should compare where you are in the payment schedule on your current loan.
Yes, most of your payment goes to interest. Lower the interest rate and your payment will be less.
You can refi for a lower interest rate with a shorter term and end up with about the same payment but it will be paid off faster
Yes it will lower your payments, but be sure to get a fixed rate. Also keep in mind how much less is the interest's rate. A lot of the times when you re-finance you will pay fees
( closing or process fees, which ever you want to call them) and it may take a year or two to recoup those fees with the lower payment. It depends on the size of the loan.
for example if the new payment saves you 100.00 a month and your process fees are $3000.00 it will take you 30 months before you really save anything. Also if you decide to move in that same time period you didn't save a dime.
Not exactly. You may end up paying more because of additional charges. Check out http://www.whataboutloans.com/mortgage/mortgage-refinance-loans.html
if you want to know more.
Yes, if you are talking about a refinance that gives you the exact same type of mortgage - i.e. 30 year fixed at 7.0% refinance into a 30 year fixed at 6.30%.
In theory, yes.
In reality, maybe.
Every loan has closing costs. If these are added to the principle of the loan, then you could have a lower rate of interest, but have a higher payment because the loan was bigger. Sometimes, the closing costs are inflated as well, so you are paying more for the loan than you should be.
If I were you, I would sit down with your financial planner and analyse the whole picture before I made a decision. If you don't have a financial planner, you can go to any of the big banks, perhaps the one you have your checking account in, and talk to them about the advisability of refinancing in your particular situation.
Mortgage brokers are good at what they do, in that they get mortgages done, and they make the terms look easy, but they are paid to get loans done, not to advise you.
If you aren't comfortable with a bank, you can also talk to an accountant, or a tax preparer, not H&R block, but one who is schooled in accounting, but not necessarily a CPA.
Good Luck
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