Posted on: 09th Feb, 2008 05:42 am
hello, i will like to thank everyone for such a great forum. i am currently overseas in afghanistan and i need some direction to decide of refinancing my home at this time is a good move. i have a 30 yr. fix loan at 6.75% and have been living at my home for 1 1/2yr now. my monthly payments are $1,351 with taxes, insurance etc. we are looking for lowering our payment and saving on the long run since we are planning to stay at our home for a long time.
our current lender (big lender) provided the quote below, 5.75% and recommended 25 yr. loan since the savings were more than a 30yr with the plan of living the home for a long period. we currently owe $142,650 on the loan. will this be a good time to refinance, will i be saving any money or should we continue paying an additional payment once a year towards the principal like we have been doing? how about this lender, does it sound about average as far as numbers or are they better lenders out there? this estimate is 2 days old and we went ahead and locked the rate, but i can choose someone else if necessary.
your help will be greatly appreciated
we have between 650-700 credit score.
new monthly payment incl. tax, insurance etc.
years / life of loan monthly payment percent
30 years fixed rate no penalty $ 1,225.00 5.75
25 years fixed rate $1,289.00 5.75
20 years fixed rate $1,402.00 5.75
30 day pay-off $142,650.00
closing cost/paper work $3,500.00
cost of points $1,460.00
deposit custody account $1,380.00
interest/etc.. $713.00
monthly payment
total loan amount $149,703.00 $1,289.00
25 yrs. $386,700.00
30 yrs $463,393.00 $1,351.00
total savings $76,693.00
our current lender (big lender) provided the quote below, 5.75% and recommended 25 yr. loan since the savings were more than a 30yr with the plan of living the home for a long period. we currently owe $142,650 on the loan. will this be a good time to refinance, will i be saving any money or should we continue paying an additional payment once a year towards the principal like we have been doing? how about this lender, does it sound about average as far as numbers or are they better lenders out there? this estimate is 2 days old and we went ahead and locked the rate, but i can choose someone else if necessary.
your help will be greatly appreciated
we have between 650-700 credit score.
new monthly payment incl. tax, insurance etc.
years / life of loan monthly payment percent
30 years fixed rate no penalty $ 1,225.00 5.75
25 years fixed rate $1,289.00 5.75
20 years fixed rate $1,402.00 5.75
30 day pay-off $142,650.00
closing cost/paper work $3,500.00
cost of points $1,460.00
deposit custody account $1,380.00
interest/etc.. $713.00
monthly payment
total loan amount $149,703.00 $1,289.00
25 yrs. $386,700.00
30 yrs $463,393.00 $1,351.00
total savings $76,693.00
Hi pzmotorsports,
Welcome to the forum and thank you for such a detailed informative post.
The rates are low and it is the right time for you to refinance. I think you have been offered a very good deal. So you should lock it now.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum and thank you for such a detailed informative post.
The rates are low and it is the right time for you to refinance. I think you have been offered a very good deal. So you should lock it now.
Feel free to ask if you have any further questions.
Best of luck,
Larry
You rate is a little high, I would say. But if you are good with it, so be it.
If you like the payment at the 25 year note, make an extra payment per year towards principle
If you like the payment at the 25 year note, make an extra payment per year towards principle
5.75 is a good rate. If the rest of the terms are reasonable then I say go for it. You can always pay extra on a 20 or a 25 year mortgage also. The faster you pay it off the less interest you will pay.
Best of luck with everything.
Best of luck with everything.
I will like to thank everyone for the advice and sorry for the late response, due to my location internet access is limited. We are going to take the offer given by our current lender, the one I explained in the original messege. We are currently waiting for some documentation to complete, but it will not be as much as paperwork as original loan since we have an account with them. Thanks to everyone for the help!! Great Forum...
You are most welcome pzmotorsports. :) Feel free to discuss your financial issues here.