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Company Loan Type APR Est. Pmt.

Should we refinance our 6.5% loan with 77K balance

Posted on: 11th Jul, 2010 09:54 pm
hi there. . . live in memphis and home values are
fluctuating as they are everywhere.
lived in home for 12 years since 1998.
present interest is 6.5%.
we owe about $77,000 . . . should we refinance
and try to get a 15 yr. loan?
Hi PamK,

You haven't mentioned whether or not you've equity in your property. If you've equity in the property, then the lender will agree to refinance the loan for a 15 year term. Moreover, it will be a good option to refinance the loan only if you plan to stay in the property for a longer period of time. This will help you in offsetting the closing costs that you pay while refinancing the home loan. Also, you should check whether or not you're getting an interest rate which is 2% lower than your present interest rate.

Take care.
Posted on: 12th Jul, 2010 03:37 am
We owe $77,000. . . bought the house for $120,000 in 1998, paid
about $30,000 down on it. Value of property now? Hard to say,
but I think it would sell in this market, in this area for about $137-$140K.
Posted on: 12th Jul, 2010 07:07 am
Weight the fees vs the savings to see what your break even point is. Then compare that to making equivalent extra payments on your existing loan. That will tell you what you need to do. Keep in mind that interest rate is heavily dependent on your credit scores.
Posted on: 14th Jul, 2010 10:34 am
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