Posted on: 13th Apr, 2012 06:42 pm
Options (current interest rate = 5.875% and approx. 20 years left):
1. Convert to a 15 year loan at a fixed rate of 3.75%. Increases monthly payment from $2466 to $2545 and has a $5000 closing costs.
2. Convert to a 20 year loan at a fixed rate of 4.125%. Decreases monthly payment from $2545 to $2144
3. Convert to a 30 year loan at a fixed rate of 4.5%. Decreases monthly payment from $2545 to $1773 - pay more towards principal each month?
which option is best. Plan on stayin in house 5 years minimum, house is underwater in value
1. Convert to a 15 year loan at a fixed rate of 3.75%. Increases monthly payment from $2466 to $2545 and has a $5000 closing costs.
2. Convert to a 20 year loan at a fixed rate of 4.125%. Decreases monthly payment from $2545 to $2144
3. Convert to a 30 year loan at a fixed rate of 4.5%. Decreases monthly payment from $2545 to $1773 - pay more towards principal each month?
which option is best. Plan on stayin in house 5 years minimum, house is underwater in value
Welcome bocaholody,
I personally believe that 15 year loan will be best. Though you may have to pay a closing cost and your payments will increase, but you will be able to get rid of the mortgage quickly. Moreover, if you stay in the property for a longer period of time, you will be able to offset the closing costs.
I personally believe that 15 year loan will be best. Though you may have to pay a closing cost and your payments will increase, but you will be able to get rid of the mortgage quickly. Moreover, if you stay in the property for a longer period of time, you will be able to offset the closing costs.
hi bocaholody!
welcome to forums!
i would like to add that if your property is underwater, then you will hardly get a chance to refinance the mortgage. in order to refinance the mortgage, most of the lenders will want you to have at least 20% equity in the property.
feel free to ask if you've further queries.
sussane
welcome to forums!
i would like to add that if your property is underwater, then you will hardly get a chance to refinance the mortgage. in order to refinance the mortgage, most of the lenders will want you to have at least 20% equity in the property.
feel free to ask if you've further queries.
sussane
The best plan is to refinance yesterday.
Only you know what you want to pay monthly.
Whatever you are willing to pay monthly, that is the best plan.
Just do it yesterday. You are at 5.875% and every day you do not refinance , you are just wasting time.
Only you know what you want to pay monthly.
Whatever you are willing to pay monthly, that is the best plan.
Just do it yesterday. You are at 5.875% and every day you do not refinance , you are just wasting time.
