Posted on: 27th Apr, 2009 07:12 am
Hi All,
I'm currently in year 12 of a 30 year mortgage on a rental property. I financed $96K at 7.5%. I plan on retiring in 2020. I want the house paid off when I retire. Here's my question. Do I refinance the existing $82K loan balance with a 10 year mortgage or should I just pay a little more each month in addition to my regular payment to have it paid off in 2020?
Thanks!
I'm currently in year 12 of a 30 year mortgage on a rental property. I financed $96K at 7.5%. I plan on retiring in 2020. I want the house paid off when I retire. Here's my question. Do I refinance the existing $82K loan balance with a 10 year mortgage or should I just pay a little more each month in addition to my regular payment to have it paid off in 2020?
Thanks!
You will be able to refinance the loan only if you've equity in the property. If you are planning to stay in the property for the next 8-10 years, then it would be a good idea to refinance the loan. It will help you in offsetting the closing costs which you'll have to pay while you refinance the loan.
Current mortgage (25 years, 16 left) is $127,000 at 6.8%. My 2nd (home eq. line) is at $37,000, split bet. 7.6% and a revolving 2.20%, w/ 11 yrs left. Is it a good idea to combine them into a 20-yr w/ todays rate of 5.0%? Someone said no, I've paid off too much principle. Thanks!
Wouldn't it be almost equally good a rate for a 15-year term? I don't have rates on hand, but you'll still save substantial dollars, I'd have to think. I don't have a problem saying yes to the 20 year term, but since you're stretching the time by doing that, it makes sense to consider 15 instead. Of course, if you prepay your principal balance on this proposed new loan, it will counteract the term's effects.
I have a rental property. It's valued around 300k. I have a 5.875% 30 yr fixed loan, and I pay about 752/mo (principle + int). I pay extra $100/mo, and I do pay every 2 weeks.
Since it's an investment property, the cost to refi is higher (so is APR I guess). Should I just pay more towards the principle or to refi (I was quoted 4.875% monthly payment is $924). Like others, not sure if it's worth the trouble and cost to refi, or use that money towards the principle.
Since it's an investment property, the cost to refi is higher (so is APR I guess). Should I just pay more towards the principle or to refi (I was quoted 4.875% monthly payment is $924). Like others, not sure if it's worth the trouble and cost to refi, or use that money towards the principle.
I forgot to say I have 277 months more to pay on my existing loan
hi guest!
welcome to forums!
if you can afford to pay off the existing mortgage, then you do not have to refinance the loan. you can keep on making extra payments towards the loan and pay it off quickly. however, if you want to stay in the property for a longer period of time and reduce the interest rate, then you can refinance the loan and get a lower interest rate.
feel free to ask if you've further queries.
sussane
welcome to forums!
if you can afford to pay off the existing mortgage, then you do not have to refinance the loan. you can keep on making extra payments towards the loan and pay it off quickly. however, if you want to stay in the property for a longer period of time and reduce the interest rate, then you can refinance the loan and get a lower interest rate.
feel free to ask if you've further queries.
sussane
We are 6 years into a 30 year loan at 5.75 we owe 122,000.00 is it worth it to refinance? We plan on staying for at least the next 10 years
Welcome Tina,
Do you've equity in your property? If yes, then you can go ahead with your refinance. If there's no equity in your property, then you won't be able to get a refinance. Also, you should check out whether or not you're getting a 2% lower interest rate than what you've now.
Do you've equity in your property? If yes, then you can go ahead with your refinance. If there's no equity in your property, then you won't be able to get a refinance. Also, you should check out whether or not you're getting a 2% lower interest rate than what you've now.
may have forgot to say that the 4 percent was 15 years but would pay off earlier with the extra payments
here is the post again- 89000 mortage on a orginial loan of 150000-at 5.75.
Been making an extra 450 monthly payment in mid month to the regular 875 per month. Opportunity to have a 4 percent loan--closing cost 4500-- seems high for new loan of 93600 - saving of 187 per month. 187/4500 would be 24 months. Would I be better to just keep what i have and make the same extra payments or at the 4 percent loan with the closing cost and make the same payment as i am at the present time- 875 at the first of the month and the 450 mid month. Waht do you think.
Been making an extra 450 monthly payment in mid month to the regular 875 per month. Opportunity to have a 4 percent loan--closing cost 4500-- seems high for new loan of 93600 - saving of 187 per month. 187/4500 would be 24 months. Would I be better to just keep what i have and make the same extra payments or at the 4 percent loan with the closing cost and make the same payment as i am at the present time- 875 at the first of the month and the 450 mid month. Waht do you think.
Hi edwin!
Welcome to forums!
It is a good option to refinance your home loan if you are planning to stay in the property for a longer period of time. You will be able to offset the closing costs that you pay while refinancing the home loan only if you stay in the property for 7-9 years. If you're planning to sell off the property within 2-3 years, then it won't make much sense in refinancing the loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It is a good option to refinance your home loan if you are planning to stay in the property for a longer period of time. You will be able to offset the closing costs that you pay while refinancing the home loan only if you stay in the property for 7-9 years. If you're planning to sell off the property within 2-3 years, then it won't make much sense in refinancing the loan.
Feel free to ask if you've further queries.
Sussane
I have 13 years left on a 20 yr fixed at 5.125 .Loan balance is 136480.00. I can re-finance for 4.375 on a 15 year. Lowering my payments by about $130.00 a month. Would it make any sense to refinance? I was planning on putting the extra 130.00 towards the principle.
we are refinancing to a 15 yr fixed at 4.25%. we owe 287K on our home but can borrow up to 400K due to appraisal and good credit. should we take out the extra cash and carry more debt or finish with the mortgage in lower payments? we would like to do a moderate remodel but have no bids yet. thanks for your thoughts...
Hi michelles,
It will be a good option to refinance your home loan as it will lower your monthly payments by $130.00. However, you should note that while you refinance the loan, you'll have to pay the closing costs. If you stay in the property for a longer period of time, then it will help you in offsetting the closing costs. If you plan to sell off the property within 2-3 years, then it won't make much sense to refinance the loan.
Hi ttop,
You can go for cash out refinance in order to improve your home or pay off any other debts that you may be having. However, while you refinance your home loan, you will have to pay the closing costs. Will you be comfortable in paying those costs? If yes, then you can go ahead with it.
Thanks
It will be a good option to refinance your home loan as it will lower your monthly payments by $130.00. However, you should note that while you refinance the loan, you'll have to pay the closing costs. If you stay in the property for a longer period of time, then it will help you in offsetting the closing costs. If you plan to sell off the property within 2-3 years, then it won't make much sense to refinance the loan.
Hi ttop,
You can go for cash out refinance in order to improve your home or pay off any other debts that you may be having. However, while you refinance your home loan, you will have to pay the closing costs. Will you be comfortable in paying those costs? If yes, then you can go ahead with it.
Thanks
My present mortgage amount is $111,000 with a 6% interest rate on a 30 year loan, we have the opportunity to go down to a 15 year loan at 3.875%. The price to refinance brings our loan amount yo to $120,000. We plan on staying in the house probably 2-5 years. Should I refinance or just pay extra on the principal-who much difference is there between the two. right now I pay $200 extra month. I am just not sure that the alomst $10,000 in closing costs is worth it????