refinance

What is refinance, please?

I bought my house in 2004. It is 4.5% interest for 10 years. Now I have about $80000(interests included) almost 4 years left.

I talked with a mortgage consultant at Wachovia bank. She said she could give me 4% for another 10 years. This way, my monthly payment will be half of my current monthly payment.

She said I could not save much since I paid over 5 years and paid most of my interest.

I am lost. If no cost to me, no prepayment penalty, I can have 4% rate in stead of 4.5%, why can't I save money besides the tax part?

Would anyone help me out?

I greatly appreciate it.

所有跟帖： 

• she did not mention that -东门庆- ♂ (378 bytes) () 08/11/2010 postreply 17:08:07

• no closing cost -leilei123- ♀ (120 bytes) () 08/11/2010 postreply 17:17:40

• What's your loan amount? Did she mention any points? -东门庆- ♂ (444 bytes) () 08/11/2010 postreply 17:26:55

• Re -leilei123- ♀ (265 bytes) () 08/11/2010 postreply 17:30:52

• Nromally HELOC can't be 1st lien -RE8888- ♂ (269 bytes) () 08/11/2010 postreply 17:34:01

• Thanks. -leilei123- ♀ (0 bytes) () 08/11/2010 postreply 17:36:45

• points is also the money that you need pay -东门庆- ♂ (285 bytes) () 08/11/2010 postreply 17:35:42

• Thanks a lot. -leilei123- ♀ (0 bytes) () 08/11/2010 postreply 17:37:23

• You have paid 5 years, if you refi for another 10 years -nnong- ♀ (287 bytes) () 08/11/2010 postreply 21:35:27

• 回复：refinance -CaLoanAgent- ♂ (372 bytes) () 08/11/2010 postreply 21:07:10

• REFI减了芝麻丢了西瓜. -pretty_woman2- ♀ (0 bytes) () 08/11/2010 postreply 22:54:15

• I'm very disappointed with all the answers above. -凌空长老- ♂ (477 bytes) () 08/11/2010 postreply 23:10:00

• Aren't tired of answering the same question again and -Conehead- ♂ (310 bytes) () 08/12/2010 postreply 05:35:04

• I'm tired of answering the same question again and again. -凌空长老- ♂ (90 bytes) () 08/12/2010 postreply 07:38:19

• Thanks so much, everybody! -leilei123- ♀ (0 bytes) () 08/12/2010 postreply 20:08:43