Posted on: 15th Jan, 2011 09:03 am
would it be better to refinance or pay off principal
house is being rented
loan origination date 04/28/2006
contractual remaining term 25 year(s) 4 month(s)
principal balance $212,880.69
principal & interest payment $1,362.52
interest rate 5.990%
house is being rented
loan origination date 04/28/2006
contractual remaining term 25 year(s) 4 month(s)
principal balance $212,880.69
principal & interest payment $1,362.52
interest rate 5.990%
Definitely refinance... you can get a 30 year 4.75% loan right now for $0 in fees. You are throwing away $150/mth in extra interest payments. (I amortized the new loan to 25 years to match your current one so I could get dollars saved.)
That's assuming that:
1) your credit is good, like 720 FICO
2) you have more than 20% equity
3) your debt-to-income qualifies for a conventional loan
Bankrate.com has a great refinance calculator at:
http://www.bankrate.com/calculators/mortgages/refinance-calculator.aspx
--steve
Titan Mortgage Alaska
That's assuming that:
1) your credit is good, like 720 FICO
2) you have more than 20% equity
3) your debt-to-income qualifies for a conventional loan
Bankrate.com has a great refinance calculator at:
http://www.bankrate.com/calculators/mortgages/refinance-calculator.aspx
--steve
Titan Mortgage Alaska
Welcome lm,
If you do not wish to keep the property for long and want to sell it off, then it will better to pay off the principal on the rental property. If you want to keep the property for a long period of time, then it will be a good option to refinance.
If you do not wish to keep the property for long and want to sell it off, then it will better to pay off the principal on the rental property. If you want to keep the property for a long period of time, then it will be a good option to refinance.