Posted on: 05th Jun, 2012 09:16 am
Folks,
I need some advice on refinancing. Here's my scenario and the plan that I've sketched out.
Remaining loan amount with mortgage company A : $171600
Loan Term: 30 years
Completed : 4 years
Current Interest rate: 5.625%
I want to pay an extra $50,000 to the principal and bring down the loan amount to $121600. So in July (2012), along with my regular mortgage payment, I'll add an extra $50,000 which will be applied towards my principle.
Then refinance the new loan amount ($121600) (towards the middle of July/2012) with a new mortgage company for a lower interest rate (between 3 and 4 %). I also thinking of paying off the entire closing cost instead of adding it to the loan.
What do y'll think? Do you see any problems that I may run into? Any advice would be very helpful.
thanks
john
I need some advice on refinancing. Here's my scenario and the plan that I've sketched out.
Remaining loan amount with mortgage company A : $171600
Loan Term: 30 years
Completed : 4 years
Current Interest rate: 5.625%
I want to pay an extra $50,000 to the principal and bring down the loan amount to $121600. So in July (2012), along with my regular mortgage payment, I'll add an extra $50,000 which will be applied towards my principle.
Then refinance the new loan amount ($121600) (towards the middle of July/2012) with a new mortgage company for a lower interest rate (between 3 and 4 %). I also thinking of paying off the entire closing cost instead of adding it to the loan.
What do y'll think? Do you see any problems that I may run into? Any advice would be very helpful.
thanks
john
Hi DORMANTROOT,
I don't think you'll run into any problem if you go as per your plan. If you have the money to pay toward the principal amount, then there won't be any problem. You can contact the local lenders and apply for refinance.
Thanks
I don't think you'll run into any problem if you go as per your plan. If you have the money to pay toward the principal amount, then there won't be any problem. You can contact the local lenders and apply for refinance.
Thanks
Hi DORMANTROOT!
Welcome to forums!
To know all about refinance, you can check out the given page: http://www.mortgagefit.com/refinance.html
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
To know all about refinance, you can check out the given page: http://www.mortgagefit.com/refinance.html
Feel free to ask if you've further queries.
Sussane
Hi DORMANTROOT,
i think..It's a perfect approach!...
i think..It's a perfect approach!...
As long as your income and credit scores are as requried to qualify, why would run into any problems?
If you are asking if we think it is a good plan, you have not provided enough information.
Will the new loan be 30 or 20 or 15 year fixed?
Do you have 12 months living expenses left in the bank after you pay down th $50,000?
How much longer do you plan to live in this property?
If you are asking if we think it is a good plan, you have not provided enough information.
Will the new loan be 30 or 20 or 15 year fixed?
Do you have 12 months living expenses left in the bank after you pay down th $50,000?
How much longer do you plan to live in this property?
