Posted on: 20th Apr, 2010 09:01 am
i have a 4.85% fixed, first w/ 8 years of 15 left. 70,000 balance.
a second (line of credit) 185,000 arm currently at 3.25%. payments on this loan are 1600.00 month.
plenty of equity in the home.
i can refinance both into a fixed 4.85% 30 year loan. bring down monthly cost and have better cash flow.
does it sound like a good idea?
a second (line of credit) 185,000 arm currently at 3.25%. payments on this loan are 1600.00 month.
plenty of equity in the home.
i can refinance both into a fixed 4.85% 30 year loan. bring down monthly cost and have better cash flow.
does it sound like a good idea?
Hi Dan,
I personally feel that it would be a good idea to refinance both the loans into one with a 4.85% interest rate. However, you should remember that you would be liable for paying the closing costs while you refinance the loan. If you stay for a longer period of time in your property, then it would make sense to refinance the loan as it would help you in offsetting the closing costs.
Take care.
I personally feel that it would be a good idea to refinance both the loans into one with a 4.85% interest rate. However, you should remember that you would be liable for paying the closing costs while you refinance the loan. If you stay for a longer period of time in your property, then it would make sense to refinance the loan as it would help you in offsetting the closing costs.
Take care.
If you're able to save money while also Fixing an Adjustable rate, GO FOR IT!! From what you have briefly explained it would appear to be a perfect opportunity for you.
Great time to refinance and protect yourself from a rising prime arte sometime in the future, probably the not too distant future.
The line of credit is so large at $185,000 that a rise in rates will really impact you adversely. No one can tell what the prime rate will be one or more years from now, but, look at worst case and figure maybe someplace between 6% and 8.5% or even higher over the next 1 to 5 years and after that. When it gets there, that is not the time to refinance.
Refinance ASAP. Right now forget it is nice to pay at 3.25%.
The line of credit is so large at $185,000 that a rise in rates will really impact you adversely. No one can tell what the prime rate will be one or more years from now, but, look at worst case and figure maybe someplace between 6% and 8.5% or even higher over the next 1 to 5 years and after that. When it gets there, that is not the time to refinance.
Refinance ASAP. Right now forget it is nice to pay at 3.25%.
