Posted on: 30th Aug, 2011 04:37 pm
I am at 5%, only 3 years into a 30 year, $324000 loan on a house appraised then at $365,000. Still owe about $302,000 on the house
Assuming I could get the mortgage rates I see at 4.5% or even 4.258% (which is lowest of what is showing when I look at rates), would it be worth it?
We still have a PMI for a couple of years and also trying to figure a way out of that, possibly get a new appraisal since the value in the neighborhood has gone up and seems to be around 385k to 400k+ on similar houses.
Assuming I could get the mortgage rates I see at 4.5% or even 4.258% (which is lowest of what is showing when I look at rates), would it be worth it?
We still have a PMI for a couple of years and also trying to figure a way out of that, possibly get a new appraisal since the value in the neighborhood has gone up and seems to be around 385k to 400k+ on similar houses.
hi julio,
if you're planning to stay in the property for a long period of time, then it will be a good option to refinance your existing mortgage. nevertheless, you should remember that you will be liable for paying off the closing costs when you refinance the loan.
thanks
if you're planning to stay in the property for a long period of time, then it will be a good option to refinance your existing mortgage. nevertheless, you should remember that you will be liable for paying off the closing costs when you refinance the loan.
thanks
when those online calculators are asking my current 'Interest rate', do they want my actual interest rate (5.0%) or my APR which is ..like 5.3% something?
If you started at $324,000 at 5% your monthly principal and interest is at $1,739.30.
If you have had the loan for 36 months the balance now is around $308,913.
If you refinance at 4.500%, you will lower P&I payment by $170
That pays to refinance. If you get a lower rate, you save a little more per month.
We do not know your closing costs, but you break even in under 24 months and you should/could refinance if you break even under 36 months.
If the house appraises higher you will either not need PMI or it will be at a monthly payment less than you pay now, so, you save even more money.
Refinance immediatley and get lowest rate you can. If your credit score is over 740 your rate should be 4.375% or 4.250% and zero ponts. Refinance now. Figure out exactly what yoiur break even is while you are in the process of refinancing, just do not delay starting to refinance. While you are reading this, you are wasting time.
If you have had the loan for 36 months the balance now is around $308,913.
If you refinance at 4.500%, you will lower P&I payment by $170
That pays to refinance. If you get a lower rate, you save a little more per month.
We do not know your closing costs, but you break even in under 24 months and you should/could refinance if you break even under 36 months.
If the house appraises higher you will either not need PMI or it will be at a monthly payment less than you pay now, so, you save even more money.
Refinance immediatley and get lowest rate you can. If your credit score is over 740 your rate should be 4.375% or 4.250% and zero ponts. Refinance now. Figure out exactly what yoiur break even is while you are in the process of refinancing, just do not delay starting to refinance. While you are reading this, you are wasting time.
Good day! I know this is kinda off topic but I was wondering if you knew where I could get a captcha plugin for my comment form? I'm using the same blog platform as yours and I'm having difficulty finding one? Thanks a lot!
Hey Julio,
This is a great opportunity to reduce that payment. With credit above 700, you should be in a good position to do so. It also will benefit you to have an appraisal done to find out the true value of the home, which in turn could eliminate the PMI sooner rather than later. Even if you're not able to obtain a 4.25 rate and you are able to get a 4.625 and eliminate that PMI, you're still ahead. START THE PROCESS!! I hope this helps...
This is a great opportunity to reduce that payment. With credit above 700, you should be in a good position to do so. It also will benefit you to have an appraisal done to find out the true value of the home, which in turn could eliminate the PMI sooner rather than later. Even if you're not able to obtain a 4.25 rate and you are able to get a 4.625 and eliminate that PMI, you're still ahead. START THE PROCESS!! I hope this helps...
