Posted on: 25th Mar, 2010 06:44 am
i have an 845k jumbo fixed rate @6% interest and a heloc at 80k at 3.45 for 15 years. my original loan amount was 940k and am paying 5635.00 per month. i have been paying 7 years into this loan. i plan on staying in this primary home for the long term. should i refinance now and get into 23 year loan (apples to apples) and lower monthly 250.00 per month, including closing costs about 10k. i was thinking of resubordinating the second..is that a good idea?..income is good. should i refinance for the 23 years left on this jumbo only going down .50 on the interest..should i buy down to 5% if possible....even if costs 20k?..please advise..or should i stay where i am? i am also making one extra payment per year on 1st.
if i refinance into a 23 year loan...am i comparing apples to apples...first year is mostly all interest, correct...and where i am now 7 years into this loan, more princ. is being paid toward the loan..please help me..
if i refinance into a 23 year loan...am i comparing apples to apples...first year is mostly all interest, correct...and where i am now 7 years into this loan, more princ. is being paid toward the loan..please help me..
Who is offering you a 23 year loan and what is the difference in the interest rate between the 23 yr loan and the 30 yr loan? If the rate is essentially the same, then what you should do is get a 30yr and just make the payments as if it was a 23yr loan. That way, your REQUIRED payment is less in the event that you lose a job or something. In addition, the extra payments go towards the loan balance and not interest.
As far as your second loan is concerned, I would keep that out there if you can. Some banks will not allow the second and it will also depend upon your LTV ratios. Obviously if you are adding additional payments those should go against the loan with the higher rate.
Buying the rate down. The math will tell the story. Will have to weigh the cost, how much the rate would drop, your monthly savings...and how long you plan to be in the home. No way to really tell without pricing it out for you.
It is really easier to explain all of this over the phone. Sometimes things get lost in translation here.
As far as your second loan is concerned, I would keep that out there if you can. Some banks will not allow the second and it will also depend upon your LTV ratios. Obviously if you are adding additional payments those should go against the loan with the higher rate.
Buying the rate down. The math will tell the story. Will have to weigh the cost, how much the rate would drop, your monthly savings...and how long you plan to be in the home. No way to really tell without pricing it out for you.
It is really easier to explain all of this over the phone. Sometimes things get lost in translation here.
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the first mortgage is a jumbo loan. i 'assume" you are in a county which is desiganmted a high cost county, maybe not. when you got the existing loan, jumbo 30 year fixed was wideluy available, now mostly avaialble in designated high cost counties.
two days ago i would have told you the rate could more likely be 5.25%, maybe 5.125%. from yesterday to today mortgage rates went from lowest of the year on wednesday to highest of the year today. now more tha likely 5.50% is a good number.
refinancing to save $250 a month is normally a good idea.
if the second mortgage rate is fixed for all those years, certainly subordinate.
two days ago i would have told you the rate could more likely be 5.25%, maybe 5.125%. from yesterday to today mortgage rates went from lowest of the year on wednesday to highest of the year today. now more tha likely 5.50% is a good number.
refinancing to save $250 a month is normally a good idea.
if the second mortgage rate is fixed for all those years, certainly subordinate.
