Posted on: 01st Sep, 2009 08:13 pm
we bought our home 8 yr ago for 50,000. since then we have invested another say 18,000 remodeling, etc. ( probably more than that actually). The house appraises for 126000... today, I went to the bank and got a loan for 82000 @ 4.75% interest, fixed for the 30 years., again... like starting all over again. But the original interst rate was 7.25% with a pmi of 29.00 orginally at 100% financed back 8 years ago. what I wanted to do was this. with the 82000 I want to pay off the 44000 we owe on the old morgage, pay 12000 for a small lot that is an eyesore adjacent to mine, so we can clean it and make our property look nicer, buy new windows and siding with 21000 .. rolling in the 5,000 for points, upfront fees etc.. along with our 1 year insurance and real estate taxes, that takes care of the 82000. was this a smart move? ( Our siding is cedar, and it is splitting pretty bad and the windows are old and just leak air.. The payment difference with the pmi and escrow was 453.00... but I paid 500.00 each month and the new payment minus pmi of course and w escrow is 529.00... and I am back to 30 years. But my home will be alot nicer. and the percentage is 2.5 less. There was no way me or my husband could save up the needed money for the windows and siding and with the low interest rate, I jumped on it.
if you can afford to make payment and you belive that the changes you are doign are goign to help improve the value of the proerty and make you live comfortably, i woul say it is really good option
going from 7.25% to 4.25% is absolutely good. i am surprised that you did not refinance for lower rate sooner
going from 7.25% to 4.25% is absolutely good. i am surprised that you did not refinance for lower rate sooner
its really nice move that you have taken .Because these things are in the category of necessity and I do not think you could have managed to get this amount with your savings.
So in a nutshell, its a good move.
So in a nutshell, its a good move.
it's too bad you're questioning yourself after the fact. i think, also, that you've done well in refinancing and helping yourself with all those other moves.
As long as you are happy its a great move. From your scenario i would say there are a bunch of benefits to this new loan. Lower payment, paying less interest, bettering your home, increasing the value, also if you take your payment savings and aply that to your new payment .. i bet you could pay down and cut several years off your loan.