Looking for 12 year term! I hate to add time to my loan!
I have 12 years remaining on my 15 yr mortgage. Refinancing to a 10 year makes my payment too much. Trying to avoid a 15 year, even though I know I can make it a 12 year by adding $500 month to my principal payment. I found one company (the big one that advertises this option specifically), but found that their fees/points/rate are very high. So high that it actually doesn't make sense for me to use them! Tempted to take a new 15 year with plan of making extra principal payments, but know that this is easier said then done (just being realistic). I owe $375, 12 years remaining on $345 (4.25%), 30k additional is on HELOC (4.25%). HELOC not used for initial purchase, single family, excellent credit, in NY (11730). Home value $600k+.I am currently considering 2.375%, 15 years with a company I have used a few times in the past 12 years. They offer good rates and low costs, just not the 12 year option. Thanks for your help! by fdcari_180_778 from Central Islip, New York. Nov 30th 2012
Bert Carpenter (BertCarpenter)
#37 ranked lender in Arizona - 2,431 contributions
Your best bet is to ignore the Big Mortgage Factory you found that will do this. Anything not in a round 5 year term is going to be priced at a premium, as you found out. To get the best deal, take the 15 year term with low fees and have your Mortgage Banker/broker calculate the amount of extra principal to pay each month to make it pay off in the same month as your current loan. You will find that at the end of the day, your total out of pocket (fees plus interest over the life of your loan) are going to be less than on a loan from those guys with the 12 year your gage. (stupid name). ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions
Your only true option is the 15 year and setting up the loan so you make extra payments to pay off in 12 years. If that company can give you 2.375 with no points or origination fees charged - take it, you've found a miracle. Personally I don't think that is possible. More likely a "no cost" refinance on a 15 year would be closer to 2.875 and maybe 3%. In my opinion, the additional cost to buy the rate down to 2.375 isn't worth the minimal savings on your payment and interest over 12 years - you'd be better off using some cash to reduce the amount of the mortgage.
Mark Simon (mark.simon)
#10 ranked lender in Delaware - 83 contributions
Yes. PhilDu's reply states it well . If you would like help in capturing the rates and closing quickly with and A+ company give me a call Mark 302-449-7373
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