Posted on: 01st Apr, 2010 08:21 pm
I currently been paying on a mortgage for 38months on a 30year loan. I am at 6.5 interest rate. The original purchase price was 173000. I am now down to 167800 which is still more than they are starting to build the same model house in this subdivision( new builders lowered prices).
The current offer I have from a mortgage company is 5.1 interest rate closing cost 4914 reserves 1929 Mtg Ins premium 3071 and 15day interest 381. Grand total to close this loan would be 9914(mtg ins preumium what a ripoff). That would push my current mortgage to 178571. That is more than the original purchase price! I would save $200 a month. I would get a refund check of the old escrow and dont have to make a payment for 2 months. If I was smart I would apply the two non payments and refund check on the principle of the house elimating roughly 4200 of that closing cost.
What do you all think. I been researching for hours and at a lost
Thanks
The current offer I have from a mortgage company is 5.1 interest rate closing cost 4914 reserves 1929 Mtg Ins premium 3071 and 15day interest 381. Grand total to close this loan would be 9914(mtg ins preumium what a ripoff). That would push my current mortgage to 178571. That is more than the original purchase price! I would save $200 a month. I would get a refund check of the old escrow and dont have to make a payment for 2 months. If I was smart I would apply the two non payments and refund check on the principle of the house elimating roughly 4200 of that closing cost.
What do you all think. I been researching for hours and at a lost
Thanks
If you're planning to stay in the property for a longer period of time, then it would be a good move to refinance the loan at a lower interest rate. Though you pay a huge amount as closing costs, if you stay for a longer period of time, it will help you in offsetting the closing costs. Thus, in the long run, you would be able to save money.