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Company Loan Type APR Est. Pmt.

refinance is worth for me?

Posted on: 11th Jul, 2010 09:09 pm
ihave a conventional loan for 30 year the rate is 4.5 i only have for 0ne year and a half .house value was 200000.00 a put down 10% now i owe 160000.00 my question is can i benefit by refinance at 3.9% for 15 years.
Welcome sanpablo,

How long are you planing to stay in the property? If you're planning to stay in the property for around 8-10 years, then it would be a good option to refinance the loan and take advantage of the lower rates. If you do not wish to stay in the property for such a long time, then it does not make much sense to me to refinance the loan. While you refinance your mortgage, you'll be liable for paying the closing costs. If you stay in the property for a shorter span of time, you won't be able to offset the amount that you pay through closing costs.
Posted on: 11th Jul, 2010 09:16 pm
The answer is NO, you should not refinance to a 15 year at 3.9% from a 30 year at 4.5%. The 4.5% 30 year is a great rate and you have the built in protection of the 30 year payment should you fall on hard times. What you should do is keep the 30, but make the 15 year payment on it; there is no prepayment penalty on your 30 if you got it only a year and a half ago, so you can pay it off as fast as you want. The closing costs for that small of a gain in rate are not worth it.

Trust me on this one, if you do the math you will see keeping what you have is a better move.
Posted on: 11th Jul, 2010 09:33 pm
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