Posted on: 02nd Sep, 2010 09:22 am
currently the remainder of mortgage is 584,000 at 6%. home is appraised at 750,000. we are now in a position to pay off 100,000 towards principal.
can i do this?
step1 ->pay 100k towards principal
step2 ->get home equity loan for 80k at 4% (approx)
setp3 ->refinance the home for 417k at 4.5% (approx)
i haven't shopped for the rates yet.
my idea of doing all this is to change the loan to a conforming loan and take advantage of lower rates. is it possible? is it worth taking this trouble?
thanks
can i do this?
step1 ->pay 100k towards principal
step2 ->get home equity loan for 80k at 4% (approx)
setp3 ->refinance the home for 417k at 4.5% (approx)
i haven't shopped for the rates yet.
my idea of doing all this is to change the loan to a conforming loan and take advantage of lower rates. is it possible? is it worth taking this trouble?
thanks
Hi vrsekhar,
You can pay $100,000 toward the principal and build up equity in your property. Once you build up equity in your property, then you would be able to refinance the loan with better rates and terms. You can refinance the loan for a shorter period of term which will help you in paying off the dues soon and you would own the property free and clear.
Thanks
You can pay $100,000 toward the principal and build up equity in your property. Once you build up equity in your property, then you would be able to refinance the loan with better rates and terms. You can refinance the loan for a shorter period of term which will help you in paying off the dues soon and you would own the property free and clear.
Thanks