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Message
Refinance Opinions
Posted on 7/14/10 at 2:18 pm
Posted on 7/14/10 at 2:18 pm
Just called my mortgage lender, for curiosity sake to ask about refinancing options. They told me they could drop me from 6.25% to 5% which would lower my payments by about $100 a month. In addition, they would roll the $3000 fee into my current loan, and I would only be out of pocket about $20.
My first thoughts were it sounded great, but I think I'm only going to be in that house 3-5 more years (ideally) so I'm thinking it might not be worth it.
Thoughts?
FWIW, I have no problems making my currently monthly payments so saving $100 a month won't make or break me.
My first thoughts were it sounded great, but I think I'm only going to be in that house 3-5 more years (ideally) so I'm thinking it might not be worth it.
Thoughts?
FWIW, I have no problems making my currently monthly payments so saving $100 a month won't make or break me.
1
Posted on 7/14/10 at 2:54 pm to Glock17
Well without having all the hard numbers we can't give you a full analysis. But based on what you said you'd save $100 a month but it will cost you $3000 to do so. So it will take you (3000/100) 30 months to start making/saving money off of this. As long as you stay in the house 30+ months it would be a good deal.
Posted on 7/14/10 at 3:00 pm to MikeBRLA
quote:
Well without having all the hard numbers we can't give you a full analysis. But based on what you said you'd save $100 a month but it will cost you $3000 to do so. So it will take you (3000/100) 30 months to start making/saving money off of this. As long as you stay in the house 30+ months it would be a good deal.
Ignoring TVM.
However, the approximation is close enough.
Posted on 7/14/10 at 3:00 pm to MikeBRLA
quote:
As long as you stay in the house 30+ months it would be a good deal.
The thing that concerns me is I don't have much equity in my home now, so if I had another 3K I would be cutting it even closer.
Posted on 7/14/10 at 3:05 pm to Glock17
quote:
The thing that concerns me is I don't have much equity in my home now, so if I had another 3K I would be cutting it even closer.
Why don't you shorten the duration on your loan?
You'll get a little bit better rate and build up equity a lot faster.
Posted on 7/14/10 at 3:07 pm to TheHiddenFlask
quote:
Why don't you shorten the duration on your loan?
When I called, they said I wasn't eligible for a 15 year.
Posted on 7/14/10 at 3:25 pm to Glock17
quote:
When I called, they said I wasn't eligible for a 15 year.
I was actually thinking more along the lines of a 20 year mortgage. 30 to 15 is a big jump.
Posted on 7/14/10 at 3:37 pm to TheHiddenFlask
alot of people are saying that you can get 4% rates. Im trying right now and will let you know. you should be able to drop down to 15 if you get 4% and pay about the same.
Posted on 7/14/10 at 10:30 pm to Glock17
quote:
The thing that concerns me is I don't have much equity in my home now, so if I had another 3K I would be cutting it even closer.
Just put the 100/month you are saving toward principle for 30 months.. and you are back to where you were equity wise.. anything after that is pure savings
Posted on 7/15/10 at 9:26 am to yaherrdme
quote:
Just put the 100/month you are saving toward principle for 30 months.. and you are back to where you were equity wise.. anything after that is pure savings
I thought about that, but I really don't plan on being in this house more then 3 more years (assuming everything works out as planned)
Posted on 7/15/10 at 11:26 am to Glock17
quote:
They told me they could drop me from 6.25% to 5% which would lower my payments by about $100 a month
That rate is too high, even on a 30 year. You should be able to do better than that.
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