Posted on: 16th Apr, 2010 09:41 am
Should I refinance[/url]?
House bought for $259K
House according to Willow is worth $269K
First Mortgage
Loan Type Conventional
Product Type Interest Only
Original Closing Date 09/22/2005
Maturity Date 10/01/2035
Current Interest Rate 6.5000%
Original Principal Balance $264,000.00
Current Principal Balance $264,000.00 (this is not the payoff amount)
Escrow Balance $2,270.03
Loss Draft Balance $0.00
Unapplied Funds Balance $0.00
Next Payment Breakdown
Principal and Interest $1,430.00
Escrow $310.70
Other Funds $0.00
Assistance Payment $0.00
Total Payment $1,740.70
Next Due Date: Apr 1st, 2010
Late Charge Date: Apr 17th, 2010
Adjustable Rate Mortgage (ARM) Information
Next Rate Change Date 10/01/2010
Next P & I Change Date 11/01/2010
Margin 2.2500%
Index 1 yr libor (75)
Last Index Used 0.0000%
Second Mortgage
Original Loan Amount $53,500.00
Original Date Sep 22, 2005
Original Maturity Date Oct 1, 2020
Interest Rate 12.750%
Loan Number 7303920417
Type 30 year FIXED
Please advise
House bought for $259K
House according to Willow is worth $269K
First Mortgage
Loan Type Conventional
Product Type Interest Only
Original Closing Date 09/22/2005
Maturity Date 10/01/2035
Current Interest Rate 6.5000%
Original Principal Balance $264,000.00
Current Principal Balance $264,000.00 (this is not the payoff amount)
Escrow Balance $2,270.03
Loss Draft Balance $0.00
Unapplied Funds Balance $0.00
Next Payment Breakdown
Principal and Interest $1,430.00
Escrow $310.70
Other Funds $0.00
Assistance Payment $0.00
Total Payment $1,740.70
Next Due Date: Apr 1st, 2010
Late Charge Date: Apr 17th, 2010
Adjustable Rate Mortgage (ARM) Information
Next Rate Change Date 10/01/2010
Next P & I Change Date 11/01/2010
Margin 2.2500%
Index 1 yr libor (75)
Last Index Used 0.0000%
Second Mortgage
Original Loan Amount $53,500.00
Original Date Sep 22, 2005
Original Maturity Date Oct 1, 2020
Interest Rate 12.750%
Loan Number 7303920417
Type 30 year FIXED
Please advise
To searslawn,
Do you want to refinance both the loans together? It is definitely a good idea to refinance and consolidate both the first and the second mortgages. Have you contacted any lender regarding the refinance? What interest rate are you getting on the refinance loan? What would be term of the new loan? What is the closing cost you have to pay to refinance? These factors will come into play while you determine if the refinance will actually help you save some money.
Do you want to refinance both the loans together? It is definitely a good idea to refinance and consolidate both the first and the second mortgages. Have you contacted any lender regarding the refinance? What interest rate are you getting on the refinance loan? What would be term of the new loan? What is the closing cost you have to pay to refinance? These factors will come into play while you determine if the refinance will actually help you save some money.
To searslawn,
It is really nice to know that you are planning to go for a refinance however if you consult a real estate attorney you will get detailed information about refinance and state laws.
It is really nice to know that you are planning to go for a refinance however if you consult a real estate attorney you will get detailed information about refinance and state laws.
searslawn,
You ahve a few things to consider here:
1. can you combine the loans. if you can then yes, it's probaly a good idea as you'll save on interest.
2. will you need to get PMI? if you don't need this at present, be careful. the figures you've given show pretty low equity (alsthough it is +ve) your lender may look at making PMI mandatory in which case you should avoid it.
3. what are the closing costs? this is a key point, if you're just looking to refinance to save interest make sure you know about the closing costs so you can see what your real gain will be.
Bottom line is that your best bet is to go and get a few online quotes and do some research, then you can make an informed decision.
You ahve a few things to consider here:
1. can you combine the loans. if you can then yes, it's probaly a good idea as you'll save on interest.
2. will you need to get PMI? if you don't need this at present, be careful. the figures you've given show pretty low equity (alsthough it is +ve) your lender may look at making PMI mandatory in which case you should avoid it.
3. what are the closing costs? this is a key point, if you're just looking to refinance to save interest make sure you know about the closing costs so you can see what your real gain will be.
Bottom line is that your best bet is to go and get a few online quotes and do some research, then you can make an informed decision.
Hi searslawn,
It is really nice to know that you are planning to do something positive. Yes you can combine both your loans and apply for refinance. It will also decrease the interest rate. But before going for it make sure about the profit you will make in the deal. Do a market research, go through the terms and conditions of the lender very carefully and also consult a real estate attorney to clear all doubts.
It is really nice to know that you are planning to do something positive. Yes you can combine both your loans and apply for refinance. It will also decrease the interest rate. But before going for it make sure about the profit you will make in the deal. Do a market research, go through the terms and conditions of the lender very carefully and also consult a real estate attorney to clear all doubts.
Yes, you should look into refinancing but, you will be limited with the products available to you. You owe more than your property is worth (underwater) which means if you want to consolidate the two, you would need principle reductions on both. You can possibly refinance the first position and leave the second alone.
