Posted on: 24th Feb, 2010 01:36 pm
lock period expired in january because lender had not completed the process. the paperwork is now with loan officer and we are contemplating whether to go 15 or 30 years. so far i haven't made the decision. 15 will result in about 250 more in payment (4.5%) and 23 year will be (5.2%) with a $50 reduction, on 287.700 balance. 23 years left on note. loan currently at 5.75%. refinance through seller with closing costs of $4,300 rolled back in. is this a wise decision? no other monies rolled in just mortgage.
Hi bpkdy,
If your lock in period expires, the lender can offer you a new lock in. However, if you want to cancel the loan, the lender may return a portion of your application fee and not the full sum.
If you can afford the 15 year loan, then it would be a good option for you. You will be able to pay off the loan sooner and thus own the property free and clear. However, you should go for a refinance only if you are able to reduce your present interest rate by at least 2%.
If your lock in period expires, the lender can offer you a new lock in. However, if you want to cancel the loan, the lender may return a portion of your application fee and not the full sum.
If you can afford the 15 year loan, then it would be a good option for you. You will be able to pay off the loan sooner and thus own the property free and clear. However, you should go for a refinance only if you are able to reduce your present interest rate by at least 2%.