Posted on: 28th Jun, 2010 10:38 pm
i have a mortgage loan of 280,000 @ 5.15 % and a second loan of 75,000
@ an adjustable rate. my first i have been paying on it for about 10 years
on a 30 year loan, would it be wise to combine the 2 loans and refinance now @ 4.6 % fixed or would that be a waste since i have 10 years paying bi-weekly payments.
@ an adjustable rate. my first i have been paying on it for about 10 years
on a 30 year loan, would it be wise to combine the 2 loans and refinance now @ 4.6 % fixed or would that be a waste since i have 10 years paying bi-weekly payments.
It really depends on the terms of the 2nd. You may want to get that locked into something permanent because these low rates can't and won't last forever. Inflation is looming and rates are going to go up, so it may be worth it. On the surface alone, 10 years in at your rate on the 1st and what you have been offered, nets you nothing, in fact it would cost you if you amortize it out. You are adding 10 more years and starting all over again. Definitely not worth it unless you are playing defense with the 2nd.
I'd be interested in hearing the fees associated with this 4.6 rate because it's above par.
I'd be interested in hearing the fees associated with this 4.6 rate because it's above par.