Thank you to everyone who submitted a question as part of our 3rd Anniversary celebration! Here is the first of the many Q&As we’ll be posting in the coming weeks!

I would like to know if this is a good time to refinance my mortgage? My current interest rate is 6.875% - monthly payment is 2,861.43? Also I have some credit cards, I have started to pay them off, but need to consolidate to do so, is this good?
Thanks,
Jemima, NJ

Hi, Jemima:

Thanks for your question and your donation to the Multiple Sclerosis Association!

A very timely question.

Nowadays almost everyone is looking to save a few dollars and for many homeowners with mortgages with interest rates considerably higher than when they originally got their mortgages…refinancing may just be the budget-beater !!

But first, YES, start evaluating your credit card situation.

We are pleased that you have started to pay down your credit card debt. IF you have been a good account, paying on time, it may be WELL worth a call to try to negotiate your card interest rate DOWN. With many credit cards reporting lower profits because of federally-legislated cuts in some of their fees...they DON'T want to lose you. Make the call !!

OK...to the house.

With a current mortgage rate of 6.875, you are serious candidate for a refinance.

We did some checking in the state of New Jersey: In general terms, it looks as if you could cut your current payment about IN HALF by refinancing for a 15 year fixed rate mortgage @ 3.5% (3.65% APR) with a point charge and a 60 day "lock."

Some NJ banks charge NO fee or a reasonable fee to refinance so shop around. You can take the savings to both pay off your credit cards and keep saving for your retirement.

Jemima (and everyone @ dolans.com) check out the current refinance numbers in your state by going to www.erate.com and www.bankrate.com.

You can also cut your mortgage costs without refinancing by making bi-weekly mortgage payments. Click here to learn how.

Best regards,

Ken and Daria