Posted on: 29th Aug, 2011 09:41 pm
We're looking at refinancing a mortgage to get advantage of the lower rates, and when looking at the options it looks like we could take out a slight additional, and use that to pay off a car loan. We'd end up saving about half of the car payment each month after the raise in mortgage payment, so it looks like it would be a net advantage financially, but we are thinking that we're missing something.
Any opinion on this?
Any opinion on this?
hi degreesonline!
welcome to forums!
you should note that while refinancing the mortgage, you will be liable for paying the closing costs to the lender. if you can afford to pay that, then it will be a good option to go for a mortgage refinance. moreover, if you stay in the property for 2 years and get an interest rate which is 2% lower than your present interest rate, then it will be a good option to refinance your existing mortgage.
you can check out this calculator in order to find out how much you will be able to save by refinancing:
http://www.mortgagefit.com/calculators/refinance.html
sussane
welcome to forums!
you should note that while refinancing the mortgage, you will be liable for paying the closing costs to the lender. if you can afford to pay that, then it will be a good option to go for a mortgage refinance. moreover, if you stay in the property for 2 years and get an interest rate which is 2% lower than your present interest rate, then it will be a good option to refinance your existing mortgage.
you can check out this calculator in order to find out how much you will be able to save by refinancing:
http://www.mortgagefit.com/calculators/refinance.html
sussane
Your overall monthly payment is lower, but, you stretched the remaining car debt over 30 years and there are probably less than four years left on your car loan.
It is not a big deal either way. Just refinance ASAP while rates are at low point. If you want to pay off the car loan, fine. If not, no big deal. You gave us no information on the car loan. We have no idea if the balance you will be paying off is $2,000 or $4,000 or $35,000. The bigger the car loan balance, the bigger your monthly car payment and the bigger those are, it makes more sense to pay off the car with the new mortgage. For smaller car loan balances, it just does not matter.
It is not a big deal either way. Just refinance ASAP while rates are at low point. If you want to pay off the car loan, fine. If not, no big deal. You gave us no information on the car loan. We have no idea if the balance you will be paying off is $2,000 or $4,000 or $35,000. The bigger the car loan balance, the bigger your monthly car payment and the bigger those are, it makes more sense to pay off the car with the new mortgage. For smaller car loan balances, it just does not matter.
