Posted on: 12th Oct, 2010 09:40 am
Closing costs $2438. Caveat: Lender only willing to lend $92000 as appraisal came in lower at $115000. due to foreclosures/short sales in the area;owe $95600 (including SBA Disaster loan) now I must come up with additional $4000. to get to loan amt.Problem:Must cash-out IRA & take (10% penalty $650,and taxes 25% $1625).Rate going from 6.50/20yr,w/16left, to 5.12/15 yr &Monthly savings $124/mo.I calculate BEP of 70months? I am also confused as there must be opportunity cost of removing the IRA.I calculate about 70mo BEP,NOT including the opp cost of distribution, and thinking not worth it especially since want to move in a few years but nothing definite on this. Help?!
Welcome llyric,
You can check out the given page in order to calculate the beak even period: "http://www.decisionaide.com/MPCalculators/FRMBreakEvenCalculator/FRMBreakEven.asp"
You can check out the given page in order to calculate the beak even period: "http://www.decisionaide.com/MPCalculators/FRMBreakEvenCalculator/FRMBreakEven.asp"
why is the lender only allowing $92k? what type of loan are you taking out? is this a rate and term of cash out refinance? primary residence or investment property?
Primary res; in Tx must consider any refi a cash-out after already having taken a cash-out in the past (had an SBA Disaster/cash few yrs ago); I suppose the 80% rule is due to my paying my own escrow?