Refinance advice

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Icon Mini Profile alleyland1




Joined: 21 Apr 2009

Posts: 1

1.54 Dollars($)
PostPosted: Tue Apr 21, 2009 1:01 pm    Post subject: Refinance advice

Can you tell me if I'm making the best decision in the following scenario?:

Three years ago I paid off my 30 yr old house but it needed considerable maintenance and upgrades and pensions covering my monthly living expenses were the only income I had. Torn between a reverse mortgage (I'm 84) or a first mortgage, I went for a 10-year interest only (5.75% fixed but adjustable after 10 yrs) mortgage, due and payable in 7 years. I now have the opportunity to convert that to a P & I 30 yr mortgage at the same rate, making an additional $100 per mo payment. There are no loan fees payable. Either way it's a gamble if I'll ever pay off either loan in my lifetime. Am I doing the right thing by switching to the 30 yr mortgage? Thanks for your help. Incidentally, the value of my house has dropped from $450,000 to $229,000 in the last year.
[Email address deleted as per forum rules. Thanks.]
Icon Mini Profile Realgeni




Joined: 13 Apr 2009

Posts: 1434

99.76 Dollars($)
PostPosted: Wed Apr 22, 2009 8:32 pm    Post subject:

Alley,

How much was the loan for?
alleyland1@calcentral.com

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PostPosted: Wed Apr 22, 2009 8:36 pm    Post subject: Refinance advice

Original interest only loan was for $107,000. New P & I loan same amount but just learned interest is lower by .25% (5.5%) Thanks for response.
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PostPosted: Mon Apr 27, 2009 4:15 am    Post subject:

Hi alleyland

I don't think it's a good option to switch to a 30 year mortgage as it is a long period of time. It would be better if you could stick to the current mortgage that you have. If you want to refinance in order to lower the rates, you should go for a 15 year mortgage.

Thanks.

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Icon Mini Profile Niicss
Niicss



Joined: 03 Oct 2005

Posts: 3211
Location: New Jersey
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PostPosted: Mon Apr 27, 2009 4:24 am    Post subject:

Hey...it was me above. I just forgot to log in. Smile
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Icon Mini Profile SSPINGARN




Joined: 30 Apr 2009

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Location: MATAWAN NJ
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PostPosted: Thu May 07, 2009 11:01 am    Post subject:

i would do a reverse mort seems like your best option
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Icon Mini Profile shayneroy
shayne.roy



Joined: 12 Nov 2007

Posts: 51

21.08 Dollars($)
PostPosted: Thu May 07, 2009 2:37 pm    Post subject:

I second SSPINGARN
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Icon Mini Profile Realgeni




Joined: 13 Apr 2009

Posts: 1434

99.76 Dollars($)
PostPosted: Thu May 07, 2009 5:06 pm    Post subject:

Yep Reverse is good. but make sure you give some one a QuitClaim or add some one to the deed.

Only thign would be, they will responsible for the loan after your death.
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