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Started By
Message
House refinance question.
Posted on 7/28/14 at 1:26 pm
Posted on 7/28/14 at 1:26 pm
I've completely ignorant to this. Advice needed. I still owe 139,000 with like 25 years left. My interest rate is 5%. House note is around 1,000 a month. Want to live here another 5 years. Questions are- is it worth it? How much would I be out of pocket upfront? Who to use? How much could I save ,monthly? TIA
5
Posted on 7/28/14 at 1:28 pm to BossierTigerFan24
You left out some important details, such as the new rate, points, and whether you're deducting the interest off your taxes.
That said, for only five years it may not be worth it.
That said, for only five years it may not be worth it.
Posted on 7/28/14 at 1:34 pm to BossierTigerFan24
we did a zero cost refi
i was in the same situation...not knowing how much longer I wanted to be in the house
i called up quicken and it was really easy.....ended up lowering my monthly payment by 150 bucks
the only money I paid out of pocket was to catch up on the new escrow account, but the old mortgage company refunded my existing escrow which just about broke even
i was in the same situation...not knowing how much longer I wanted to be in the house
i called up quicken and it was really easy.....ended up lowering my monthly payment by 150 bucks
the only money I paid out of pocket was to catch up on the new escrow account, but the old mortgage company refunded my existing escrow which just about broke even
Posted on 7/28/14 at 1:48 pm to BossierTigerFan24
139,000/1000(a month)=139 months(11.58 years to pay off before interest)
139,000 x 0.05 x 25 years=173,750 of interest?
So, it would be $312,750 after the interest and principle?
312.75/12= 26.06 years till pay off.
I'm bored and just trying to figure this out. I'm not exactly sure if my math is right, so someone enlighten me.
edited to add the step I missed.
139,000 x 0.05 x 25 years=173,750 of interest?
So, it would be $312,750 after the interest and principle?
312.75/12= 26.06 years till pay off.
I'm bored and just trying to figure this out. I'm not exactly sure if my math is right, so someone enlighten me.
edited to add the step I missed.
This post was edited on 7/28/14 at 1:59 pm
Posted on 7/28/14 at 2:06 pm to BossierTigerFan24
If you stayed there 5 more years
139,000x0.05x5=34,750 in interest
If you were able to refinance at 3.5%
139,000x0.035x5=24,325
Hypothetically, you would save over $10,000 over the 5 years if you were able to get a rate of 3.5%. That's before any sort of fee's and other stuff dumped on top of it.
This is a learning experience for me, and in no way meant to be advice. I would actually appreciate someone to correct me and to explain what I have missed, or left out.
Posted on 7/28/14 at 2:09 pm to brucevilanch
quote:
139,000 x 0.05 x 25 years=173,750 of interest?
No, the amount of interest paid declines every month because you are paying off prinicpal each time. Look into learning how to build an amortization table with a spreadsheet. I highly recommend that anyone interested in purchasing a home learn this backwards and forwards, it's the only way to really understand the impact of changing assumptions.
Posted on 7/28/14 at 2:12 pm to foshizzle
ahhhhhh, I gotcha. Thank you very much.
Posted on 7/28/14 at 2:52 pm to brucevilanch
bankrate.com has a good mortgage calculator; it will show the entire amortization table. You plug in all the variables, and it allows you to put in addt'l monthly principal payments, one time lump sums, etc. You can run the numbers on the loan you have and see what changes with a new loan/interest rate decrease. Depending on the cost of refinancing, you might be better off putting the cash directly toward the loan you already have if you plan to hold it just 5 years.
Posted on 7/28/14 at 11:51 pm to BossierTigerFan24
For only 5 years, you want a no closing cost refi.
For your loan size, I don't know how low you will be able to get the rate (loansize is often the biggest factor in rate for a no closing cost loan).
Shop 1 lender (quicken, us bank, wells, etc.), 1 broker, and 1 local bank for no closing cost loans. Some companies get preferred rates for a state, loan size, or particular credit score.
Good luck in finding a deal that suits you.
For your loan size, I don't know how low you will be able to get the rate (loansize is often the biggest factor in rate for a no closing cost loan).
Shop 1 lender (quicken, us bank, wells, etc.), 1 broker, and 1 local bank for no closing cost loans. Some companies get preferred rates for a state, loan size, or particular credit score.
Good luck in finding a deal that suits you.
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