Should I Refinance my original Loan and combine with equity Loan
Should i refinance my 15yr mortgage 3.75 interest rate i can reset now to 2.75 for fee of 500.00, i have six years remaining 60,000.00 i pay 700.00 principle 200.00 interest. I also have equity loan for 109,000.00 16 years remaining on 20 yr loan @ 5.75 i can do a reset to 4.10% for 250.00. I applied for a refinance with Loan Depot and paid 498.00 application fee got a rate of 3.375 for 15 years cost of loan about 1000.00 plus they will increase my pay off from175,000.00 to 179,500.00. I wiil see a savings of 500.00 a month . I make about 65,000.00 a year , I still have about 75,000.00 equity in my home and was hoping to build a new house on a two acre lot, but first i have to sell my house, i am getting very nervous about this refi i feel like maybe i should just continue on with orignial loan pay that off and be in a better position to sell or stay if i have to i live in a nice neighbor hood taxes are 5400 per year school district very goo but i am a babyboomer was going to move to the country build a new home where taxed an Ins. cheaper . I used the equity in my home to buy the Lot to build 4yrs ago,before the recession and is worth about 40,000.00 Less at this time so i do not want to sell that and i may build their eventually. HELP!!! by pat_bu_542_387 from Springfield, Pennsylvania. Sep 25th 2012
Bert Carpenter (BertCarpenter)
#36 ranked lender in Arizona - 2,431 contributions
If you only have 6 years to go on your current mortgage, some of your $500 savings is by stretching your term back out to 15 years, meaning you are paying less principal each month, which is not really savings. The simple answer is this: If you truly intend to sell within the next year, don't do anything. If however, you plan to stay (not sell) longer than a year, but less than 4-5 years, doing the rate modifications is probably the best since it will lower your interest amount at a nominal cost. Doing a full consolidation refinance usually only makes sense if you are staying long term. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
It's pretty clear to me that if you plan on moving in the next year or so, then don't refinance anything.. If you plan on being there for the next 5 years, then reset your first 2.75%, and your 2nd at 4.1%... with your first, you're on the back side of a 15 year mortgage when 78% of your payment is going to principal, and that % goes up after every payment.. On the 2nd, you have 16 years to go and if it's going to cost you $5500, then there's just not enough savings to make this short term refinance worth it.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
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