Since you did not state a mortgage amount I will use a loan amount of $300,000 to make my point. $300k @ 4.75%= Payment $1565
$300k @ 3.50%= Payment $1347
SAVINGS MONTHLY = $218.00
SAVINGS 12 months = $2616.00
SAVINGS 24 MONTHS = $5232.00
SAVINGS 336 MONTHS (28 Years) = $73,248.
Using my formula above you will see that your bank fees should not exceed $5232 on a $300k loan, leaving you with a savings of $73,248 over 28 years. One of your larger bills might be the mortgage tax and you can reduce this significantly by doing a CEMA.
If you need any help achieving similar goals with your mortgage contact me anytime. No time is to early or late to discuss your business. SERVICE before COMMISSION 914-299-0420
If you go to a knowledgeable mortgage originator when you refi, then you will not have to pay the mortgage tax again (1.8%) or full title. With this in mind you can see if it is worth refinancing.
I have no idea how anyone could say "no". One year into a 30 year and you can drop your rate by 1.25% is a huge savings. If you are worried about adding an extra year then you can "self-amortize" the new loan at 3.5% over 29 years.
You should absolutely refinance. Note that I do not lend in NY so it's not a ploy for your business, it's simply an answer to your question and there is no question that the answer is YES!
Things to look at are residence goals - are you planning to move in the next 1-5 years or do you plan to stay in the home for quite awhile? Are you looking to refinance for another 30 years or are you looking to refinance for a 15 or 20 year note? Are you looking to refinance for cash out or just for loan balance.....or even with a payment to decrease current amount?
When you figure your payments based on year of note and amount financed (you can use any Internet calculator program for monthly payments), look at the difference and then determine the change in total interest paid and compare to your long term goals of occupancy. Good Luck.
Darrell D. Drouillard
Home Team of America
16719 Huebner Rd., Bldg 4
San Antonio, Texas 78248
'Serving all Your Real Estate Needs'