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 alleyland1
Joined: 21 Apr 2009
Posts: 1
1.54 Dollars($)
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 Posted: Tue Apr 21, 2009 1:01 pm Post subject: Refinance advice |
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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 $229,000 in the last year.
[Email address deleted as per forum rules. Thanks.] |
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Realgeni
Joined: 13 Apr 2009
Posts: 1434
99.76 Dollars($)
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| Posted: Wed Apr 22, 2009 8:32 pm Post subject: |
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Alley,
How much was the loan for? |
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alleyland1@calcentral.com
Guest
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| Posted: Wed Apr 22, 2009 8:36 pm Post subject: Refinance advice |
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| Original interest only loan was for $107,000. New P & I loan same amount but just learned interest is lower by .25% (5.5%) Thanks for response. |
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Guest
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| Posted: Mon Apr 27, 2009 4:15 am Post subject: |
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Hi alleyland
I don't think it's a good option to switch to a 30 year mortgage as it is a long period of time. It would be better if you could stick to the current mortgage that you have. If you want to refinance in order to lower the rates, you should go for a 15 year mortgage.
Thanks.
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Niicss
Joined: 03 Oct 2005
Posts: 3211
Location: New Jersey
506.48 Dollars($)
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| Posted: Mon Apr 27, 2009 4:24 am Post subject: |
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Hey...it was me above. I just forgot to log in. 
_________________
Good is the Enemy of Great. |
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SSPINGARN
Joined: 30 Apr 2009
Posts: 96
Location: MATAWAN NJ
16.95 Dollars($)
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| Posted: Thu May 07, 2009 11:01 am Post subject: |
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i would do a reverse mort seems like your best option
_________________
SCOTT SPINGARN
BRANCH PARTNER
RBI HOME LOANS
732-290-1888
WWW.RBILOANS.COM |
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shayneroy
Joined: 12 Nov 2007
Posts: 51
21.08 Dollars($)
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| Posted: Thu May 07, 2009 2:37 pm Post subject: |
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I second SSPINGARN
_________________
Shayne Roy
Profolio Home Mortgage Corp.
Add : 3701 Briarpark Suite 150, Houston TX 77042.
Direct: 713-429-4304 Ext.1032 |
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Realgeni
Joined: 13 Apr 2009
Posts: 1434
99.76 Dollars($)
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| Posted: Thu May 07, 2009 5:06 pm Post subject: |
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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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