Posted on: 01st Feb, 2011 08:23 am
we financed $158,650.00 with a 6.625% interest rate for 30years; we did not have the 20% down as we were waiting for a house to sell so are paying mortgage insurance too. shortly after purchase the other house did sell, and the equity was paid to our current home principal. we have lived here for almost three years.
our present situation is a monthly payment of $1,253.50 for 8 years and 10 months.
would it be financially beneficial for us to refinance with the current lower interest rates? we would not want to extend the length our of loan.
we are not presently paying additional principal, although we have been updating the home and have added a large shop (which means our payments will go up due to an increase in our insurance rates).
our plan is to pay extra principal but it may not occur until our children have finished college (4 or 5 more years).
thank you in advance for your time.
our present situation is a monthly payment of $1,253.50 for 8 years and 10 months.
would it be financially beneficial for us to refinance with the current lower interest rates? we would not want to extend the length our of loan.
we are not presently paying additional principal, although we have been updating the home and have added a large shop (which means our payments will go up due to an increase in our insurance rates).
our plan is to pay extra principal but it may not occur until our children have finished college (4 or 5 more years).
thank you in advance for your time.
If you can make yourselves more comfortable with monthly payments by refinancing, especially at a rate quite a bit lower than your current rate, I think you ought to jump at the opportunity.
You have provided a lot of information, but, not enough.
1. Your monthly payment is $1,253.50.
Is that just principal and interest and/or taxes and/or PMI?
A $158,650 mortgage at 6.625% is monthly P&I = $1,015.85
I am guessing PMI may be $237.64 monthly?
But, I can not do an anlysis guessing.
2. Why is a payment of $1,253.50 made for 8 years and 10 months?
3. It sounds like you paid down principal after the other house sold.
What is the current balance?
4. What do you estimate the value of the house to be today?
If you answer those questions, we can make a recommendation.
On the surface, rates are lower so it probably makes sense to refinance, but, I can not give you good numbers without some more information.
1. Your monthly payment is $1,253.50.
Is that just principal and interest and/or taxes and/or PMI?
A $158,650 mortgage at 6.625% is monthly P&I = $1,015.85
I am guessing PMI may be $237.64 monthly?
But, I can not do an anlysis guessing.
2. Why is a payment of $1,253.50 made for 8 years and 10 months?
3. It sounds like you paid down principal after the other house sold.
What is the current balance?
4. What do you estimate the value of the house to be today?
If you answer those questions, we can make a recommendation.
On the surface, rates are lower so it probably makes sense to refinance, but, I can not give you good numbers without some more information.