Posted on: 21st Feb, 2011 08:29 am
i have a 15 year mortgage with only 19 years left at 5.250% interest on 189,000.00 balance. my mortgage company will let me refinace for 15 years at 4.385% at no closing cost. do you think i should refinance?
i also can refinance at 3.875 for 10 years and role in my 8,000 dollar home equity loan. i would have to pay closing cost. is this a better deal?
i also can refinance at 3.875 for 10 years and role in my 8,000 dollar home equity loan. i would have to pay closing cost. is this a better deal?
Welcome spprice,
Refinance will be a good option if you plan to stay in the property for a longer period of time. You can go for the mortgage refinance for the 10 year term period. Though you have to pay the closing costs, if you plan to stay in the property for a long period of time.
Refinance will be a good option if you plan to stay in the property for a longer period of time. You can go for the mortgage refinance for the 10 year term period. Though you have to pay the closing costs, if you plan to stay in the property for a long period of time.
1. it is not possible to have 19 years left on a 15 year mortgage. i think you mean 19 years left on your 30 year mortgage.
2. if you have a no cost loan for 15 years at 4.375%, what would the loan amount be? there is no such thing as a no cost loan, although that term is used when you pay no costs out of pocket. it usually means the mortgage is higher to pay all the costs.
3. if you can afford the ten year payments after rolling in the second mortgage, that probably makes the most sense without my even knowing the exact amounts of everything.
2. if you have a no cost loan for 15 years at 4.375%, what would the loan amount be? there is no such thing as a no cost loan, although that term is used when you pay no costs out of pocket. it usually means the mortgage is higher to pay all the costs.
3. if you can afford the ten year payments after rolling in the second mortgage, that probably makes the most sense without my even knowing the exact amounts of everything.
First, a "no cost loan" is where closing costs that would normally be paid out-of-pocket are covered by the borrower accepting a higher interest rate. It is also possible for some slick sales person, however, to just add the closing costs into the loan amount and tell you there is no closing cost. You need to be careful on this and know exactly how the closing costs are being paid.
Second, if you can get a 15 year loan at 4.375% without having closing fees added to the loan amount, that would be a good deal from day one.
The same holds true for the 10 year 3.875% but you should provide more information regarding the closing costs. Also, it would likely make sense to roll in the home equity loan as well. Is it a home equity loan with a fixed rate and term or a home equity line of credit?
Second, if you can get a 15 year loan at 4.375% without having closing fees added to the loan amount, that would be a good deal from day one.
The same holds true for the 10 year 3.875% but you should provide more information regarding the closing costs. Also, it would likely make sense to roll in the home equity loan as well. Is it a home equity loan with a fixed rate and term or a home equity line of credit?
