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duduong

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smithsussane

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banker0679
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gmakerley
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Joined: 09 Nov 2007
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jveenstra
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Joined: 10 Nov 2008
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Posted: Fri Dec 26, 2008 9:10 am Post subject: Refinance
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If you refinance, the rate you should refinance should be at 5.000% or lower and you should keep and subordinate the existing HELOIC.
If your rate now is 5.75% and the balance is $190,000 and you have been paying for 5 years, that means your mortgage started at $205,000 and your present principal and interest is about $1,196 monthly.
I do not know what state you are in and I do not know your typical taxes and closing costs.
A good guide for refinancing is if you can lower payment enoygh so you break even on the costs in about 2 years (24 months). To me that means your new principal and ineterst payment should be about $1,196 monthly principal and interest. If you raise mortgage to cover prepaids and closing costs. a new mortgage of $197,000 with a monthly payment of $1,058 would requite an interest rate of 5.00%. Lower, of course, is better.
If you have 300 payments left at $1,196 you will pay $358,800.
If you have a new mortgage at $1,058 for 360 months you will pay $380,880 which is $22,080 more. But, if you save the difference between your current payment and the new lower payment for 300 months at $138 a month you save $41,400 and that is if you save at no interest at all.
So, you save more than you pay over the long haul.
If, instead of saving monthly, you continue to pay on the new mortgage what you now pay on the present mortgage, $1,196, in other words, voluntarily pay $1,196 when you are only required to pay $1,058, you will pay off the new $197,.000 mortgage in 279 months which is 21 months less than the payments you have left now and you save $25,116.
Most people do not save monthly and most do not pay extra, however, the average life of a 30 year loan is 7 years or less and the average time anyone lives in the same house is 14 years so you save montjhly with lower payments and never pay for 30 years on the same mortgage anyone.
Right now a 15 day lock is better than 30 day lock and your mortgage lender needs time to subordinate.
My suggestion: Pay for an apprasial now, get tyhe subordination and the processing all done and ready to close, and, based on what the fed says they will do, lock for 15 days and close below 5.00%.
At risk is the appraisal. If you pay for an appraisal and rates go up you lose. No guarantee, but, right now it is a good bet to pay for the appraisal.
You DO NOT want to refinance and pay off the HELOC because that looks like it puts you over 80% of value and you do not want to do that. You would need Private Mortgage Insurance and that monthly payment would eat up your basic savings monthly. _________________ John Veenstra, Sr Mortgage Consultant
Approved Funding Corp
Licensed NJ NY CT PA
201-833-0123x278
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rayretired
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Posted: Tue Jan 11, 2011 1:17 pm Post subject: refinancing mobile home and land
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| my 1994 1700sq ft double wide and 3/4 acre lot is paid for, Iam have a credit score of 680 to 700, and I'am in debt for around $60,000 in credit cards, vehicles, college. My monthly payments is around $3,300. My wife and i make around $4,000 month take home ( the rest goes towards food and electric, etc). We live in a double wide community several similar homes around are area sell for around $80,000 to $100,000 plus. Would it be wise to refinace our home to pay off our depts and lower are monthly bills. We just feel like we live pay check to pay check. |
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gmakerley
 Community Mentor


Joined: 09 Nov 2007
Posts: 12330 Location: bloomfield, ct
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rugbymad

Joined: 20 Oct 2011
Posts: 6
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helpfuljohn

Joined: 20 Oct 2011
Posts: 22
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smithsussane

Joined: 18 Sep 2008
Posts: 10020 Location: Alaska
917.78 Dollars($)
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