Posted on: 22nd Mar, 2011 05:04 pm
since mortgage rates are very low, we are thinking about refinancing our existing mortgage and home equity loan into one . my wife and i are 40-43 yrs old with excellent credit.
15yr loan-$150,000 ($190,000) april 2003 at either 5.25% or 5.65%(monthly $1200-$1300)
owe $84,000 with 7yrs left as off march 2011
owe $47,000 on home equity loan, inground pool was $40,000 aug.2010.
appraised at $200,000 before inground pool was added. i'm wondering how much pool would add to total appraisal. probably not much.
loan would be 15yr for $130,000, i hope between 4%-4.5%. we plan on staying for another 10-15 years.
should i look into it?
15yr loan-$150,000 ($190,000) april 2003 at either 5.25% or 5.65%(monthly $1200-$1300)
owe $84,000 with 7yrs left as off march 2011
owe $47,000 on home equity loan, inground pool was $40,000 aug.2010.
appraised at $200,000 before inground pool was added. i'm wondering how much pool would add to total appraisal. probably not much.
loan would be 15yr for $130,000, i hope between 4%-4.5%. we plan on staying for another 10-15 years.
should i look into it?
hi sd72667,
welcome to mortgage fit,
i have assumed that your home equity loan is around 6 % per annum.so accordingly i have done the calculations...and here is the outcome.....
if you refinance your current 5.65% mortgage and your current 6.00% homeequityloan into a single 4.50% mortgage, your monthly payment will decrease by $797.86 and you will pay an additional $16,348.62 in interest charges over the life of the mortgage.
i have done this calculation with the help of one of the calculators available on this website..you can also have look at it...
http://www.mortgagefit.com/calculators/consolidate-refinance.html
take your wise decision..........
feel free to ask any further query if you have....
dipa
welcome to mortgage fit,
i have assumed that your home equity loan is around 6 % per annum.so accordingly i have done the calculations...and here is the outcome.....
if you refinance your current 5.65% mortgage and your current 6.00% homeequityloan into a single 4.50% mortgage, your monthly payment will decrease by $797.86 and you will pay an additional $16,348.62 in interest charges over the life of the mortgage.
i have done this calculation with the help of one of the calculators available on this website..you can also have look at it...
http://www.mortgagefit.com/calculators/consolidate-refinance.html
take your wise decision..........
feel free to ask any further query if you have....
dipa
Hi sd,
It will be a good move to combine both the loans into one mortgage as the rates are going low and you're planning to stay in the property for a longer period of time. This will also help you in offsetting the closing costs that you will be paying at the time of closing.
It will be a good move to combine both the loans into one mortgage as the rates are going low and you're planning to stay in the property for a longer period of time. This will also help you in offsetting the closing costs that you will be paying at the time of closing.
what's the current interest rate and term on the second mortgage?
also, are you trying to reduce what you are currently paying monthly for the 1st and 2nd mortgage or would you be comfortable making the same payment on a new loan as what you are currently paying now?
also, are you trying to reduce what you are currently paying monthly for the 1st and 2nd mortgage or would you be comfortable making the same payment on a new loan as what you are currently paying now?
Our home equity is 5% for 20 years. Yes we would be fine paying the same payment as we are now. Do banks offer 10 year mortgages?
Hi sd72667,
Banks do offer 10 yr mortgage if you intend to stay there for long period...for example more than 10 yrs.
here is the link for your reference.....
http://www.mortgagefit.com/loan-programs.html
Feel free to ask any further query if you have.....
DIPA
Banks do offer 10 yr mortgage if you intend to stay there for long period...for example more than 10 yrs.
here is the link for your reference.....
http://www.mortgagefit.com/loan-programs.html
Feel free to ask any further query if you have.....
DIPA
Yes there are 10 year fixed rate loans and you might be able to get a rate of around 3.75% or 3.875% with low closing costs if your credit scores are high enough. Monthly payment would be a little over $1300 a month.
It looks like you are currently paying over $1500 a month now for both loans you have so if you keep making the same payment on a new 10 year loan (add $200 a month extra to principal) the mortgage would be paid off in about 8.5 years.
It looks like you are currently paying over $1500 a month now for both loans you have so if you keep making the same payment on a new 10 year loan (add $200 a month extra to principal) the mortgage would be paid off in about 8.5 years.