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kbissing · Joined: 27 Apr 2009 Posts: 1 3.69 Dollars($)

Should I refinance or pay more towards loan???

Our current rate is 5.375 on a 30 year note. we owe 280,000. Our monthly payment on at is 1679. (We have been paying 1800/month). We have an opportunity to refinance into a 15 year loan at 4.6 with 0 points. (We can afford the extra payment)

What makes sense? Should we stick with our original loan and just pay the amount ($2157) we would be paying on the 15 year note to the original note?

We plan on staying in the house for a very long time.

jameshogg · Posted: Mon Apr 27, 2009 10:54 pm Post subject:

Hi kbissing,

Rates are quite low these days. So it is good option to refinance the loan at a lower rate. You have mentioned that you will be able to afford the extra payments after refinance. Thus, in my opinion refinancing the 30 year mortgage into a 15 year will be a good idea. Also if will help you in paying off the debts quite early and owning the house free and clear.

Thanks

pogonogo62 · Joined: 19 May 2009 Posts: 2 1.90 Dollars($)

I have 24 years to go on a 30 year mortgage. My interest rate is 5.75. I can refinance at 4.5 with roughly 3500 in closing costs on a 15 year loan. Should I refinace or just start paying down principle. I am wondering if it will work out the same, and save my self the closing costs. I plan on staying in the house for atleast 5 more years but not the whole 24 years. I also plan on remodeling and renting it. My loan balance is 76, 300.

gmakerley · Posted: Tue May 19, 2009 2:00 pm Post subject:

pogonogo i would think you'd be able to get an even lower rate with minimally more in costs...you'll still probably get your money back.

Posted: Tue Nov 24, 2009 7:27 am Post subject:

i am in a 30 year mortgage@ 1161.58dollars per month. I have beinging paying the loan for five and a half years now. i an on a bi-weekly program which will help me paid off the loan in 23 years. i have a second mortgage for 25000(interest loan), i had for a years ans a half now. my first loan rate is 6%. the second is 8%.is it wise for me to refinance at4.8%for 30 years and conbine the two loans together at a payement of 1,145.00 per month or for 20 years @1,342.00.

jameshogg · Posted: Tue Nov 24, 2009 9:38 pm Post subject:

Hi Guest,

I feel it would be a good option to refinance both the loans at a rate of 4.8% for 30 years. You will be liable for only one mortgage payments that too at a lower interest rate. However, you should remember that you would be liable for the closing costs as well as other related costs when you refinance the loan. If you're planning to stay in the property for a longer period of time i.e. for 8-10 years, then you would be able to offset the closing cost and it would be a good idea to refinance.

Thanks

Guest

I owe $153,000 at 5.875% & have 282 $1,005 / month payments left on a 30 year mortgage. I could refinance for 20 years reducing the number of payments to 240, but increasing monthly payments to $1,030 / month.
I have been able to pay $5,000 extra a year on the principle & will continue to do so. With the ability to pay extra does it make sense to pay $3,200 in closing cost or just keep paying on the principle?

jveenstra · Posted: Wed Jan 06, 2010 4:47 pm Post subject: Refinance

kbissing
If you refinance $280,000 to 15 fixed at 4.625%, your monthly payment is $2,159 and over 15 years you pay $388,620.
If you want to pay off the present mortgage at $280,000 at 5.375% in 15 years you pay every month $2,269 and over 15 years you will have paid $408,420.
By refinancing you save $19,800 over 15 years (minus closing costs)

If you voluntarily pay the same on the present mortgage as you would on the new mortgage, you would pay $2,159 and that would pay off in 16.25 years or 15 months longer than the new 15 year would.

You decide if the $19,000 in savings over 15 years is worth it to you.

jveenstra · Posted: Wed Jan 06, 2010 4:59 pm Post subject: Refinance

pogonogo
Your present mortgage payment is probably around $490 a month.
If you just pay what you are now, nothing extra, your balance after another 5 years will be about $67,750
If you refinance to $79,800 for 15 years your balance after 5 years will be $58,903, about $8,830 less. You will be paying $610 a month which is $120 a month more than you pay now. For 5 years that will be $7,200 more than you pay now. You will have saved over 5 years about $1,600.

If you voluntarily pay $610 now, which is $120 more than you now pay, the existing mortgage balance after 5 years from now will, be $59,357, about $454 more than if you refinance.

If you are going to stay there 5 years, do not refinance.

If you stay trher 16 years, you save $$7,320 becasue the new 15 year mortgage will pay off 12 months faster than if you pay $610 on the present mortgage.

If I were you, I would not refinace

Guest

We purchased a condo for $222,685 and put down enough money to where the currently mortgage is at $98,278.60. We have our daughter on the title as she lives there, but recently married. She and her husband have plans to move, but want to rent out the condo space, as it has depreciated in value (it could sell today for $124,900) and it would be a loss to sell it. Does it make sense to refinance it to a lower rate, in order to rent it out and wait till the market recovers to sell it?

jveenstra · Posted: Tue Jan 12, 2010 10:26 am Post subject: Condo

Ellen, I replied to your question in your other posting.

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

Great posts from Jveenstra, nicely broken down into the pertinent details. Refinancing is often a good idea if you can cut down the interest rate without incurring huge fees at the front end.

Lower interest rates = more of your payments actually paying off the principal debt = debt free faster.

Guest

We owe around $185,000 (not sure since we don't get paper statements anymore) on a 30 year loan with 27 years left on it. I think the original amount of the loan was $195,000 and the interest rate is 6.5%. Our monthly payments are just under $1,400 but we pay about $20 extra dollars a month.
We have been wondering the past few months if we should refinance and was actually contacted by the bank that holds our current mortgage last week. They say that if we are approved, we could get a new 30 year loan at 5.375% and that our monthly payments would lower to $1,221.12. We were told that we would have to pay a $345 fee just to have the underwriters look at the application to see if we can be approved. If we aren't approved we don't get the $345 back.
My question is, is this fee normal or even legal? Should we refinance and make the same payments to help pay down the loan faster? Our credit score is 719 and we don't have any late payments in the last 12 months. We do have a foreclosure on our credit that is only 5 years old. We only have 2 credit cards with a total balance of about $4,000 that we hope to pay off with a nice tax return. My husband's raise should happen in March but we don't know what it will be yet. Should we wait until he gets his raise? We were told that we wouldn't have to show any documentation. We just aren't sure what to do. I don't like the rate we have now and we are only into it 3 years, but the property values have gone down about $40,000 over the last 2 years so is it even a good time for us to refinance even to get a better interest rate? Help, Please!!

Posted: Mon Feb 01, 2010 3:08 pm Post subject:

in all likelihood, a lender wouldn't charge a fee that wasn't legal, such as that $345. you needn't do business with that lender if you feel that their fee is too high. if it is an appraisal fee, then the funds are going directly to an appraiser. it doesn't sound like that, however. honestly, though, if that's a fee simply so they can look at your credit and give you an idea about qualifying, i have to say you ought to look elsewhere.

what the value of homes in your area has done to your situation is impossible to assess without real information. values declining by $40000 in 2 years isn't enough detail to let us know how that affects your situation specifically.

it's well worth your trouble to check into refinancing, since you ought to be able to save some. it never hurts to inquire.

Guest

i have a loan for 7 years now. the loan is 100,000 and the interest rate is 5.625. my monthly is 575.66. my pricipal on loan now is 85,000. does it worth for me to refinance at 85,000 at 5.5 interest rate with no fee, or should i stay at my current loan that i have now. i am planning to stay in this house for a long time. please someone help me what should i do to make better sense on my financial sisuation. thank you for your wise suggestion

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Should I refinance or pay more towards original principal?