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!
We owe $138,000.00 at 5.375% with 13 years left. We could refinance for 10 years at 3.875%. Should we just add more (100.00 max) to principal and save closing costs of $2,400.00?
To Carmine,
As you're planning to stay in the property for probably 2-5 years, it won't make much sense in refinancing the home loan. You won't be able to offset the closing costs that you pay while refinancing the loan. Thus, you won't be able to save anything by refinancing the mortgage. It would be better if you could pay extra towards the principal of your present loan.
To Jan,
If you can afford to add an amount of $100 to your monthly payments, then it would be better to do so rather than refinancing the loan. This will help you in saving the closing cost of $2,400.00.
As you're planning to stay in the property for probably 2-5 years, it won't make much sense in refinancing the home loan. You won't be able to offset the closing costs that you pay while refinancing the loan. Thus, you won't be able to save anything by refinancing the mortgage. It would be better if you could pay extra towards the principal of your present loan.
To Jan,
If you can afford to add an amount of $100 to your monthly payments, then it would be better to do so rather than refinancing the loan. This will help you in saving the closing cost of $2,400.00.
we filed chapter 13 bankruptcy and want to know if we can make additional monthly payment on our arm interest only mortgage without being penalized. we have not been late on any payments.
Hi Inez!
Welcome to forums!
As far as I can understand, you might be able to make extra payments towards your interest only ARM. However, before you start making extra payments, you should consult your bankruptcy attorney and the lender regarding the same.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I can understand, you might be able to make extra payments towards your interest only ARM. However, before you start making extra payments, you should consult your bankruptcy attorney and the lender regarding the same.
Feel free to ask if you've further queries.
Sussane
i have 23 years left on a 30 year mortgage with an interest rate of 5.375%. my balance is 94,250 with monthly payments at 594. i would like to refinance to lower my interest rate and monthly payment but the charges seem awfully high to get another loan for at least 4.375%. if i do another 30 year mortgage, i am adding another 7 years for what seems to be only a >$150 reduction in my monthly payment. i don't know how to figure out if it is worth it to refi or not. i thought i could reduce my payment and also the term to 20 years but then the cost seem to high to even do that. no one seems to want my paper either for such a tiny loan and my house is worth 700k. any help or good ideas?
Also, I did the lookup and Fannie Mae does hold my mortgage. Can I just go through them to refi? When I called my current "servicer", they were not helpful and did not want me to refi quoting me rates higher than what I have now!
Hi Fidoprincess!
Welcome to forums!
If you've equity in your property, then you would be able to get a refinance. The rates and terms that you receive will depend upon the housing market. Moreover, it is not mandatory for you to refinance the loan with the same lender. You can contact other local lenders in order to get a refinance. A little bit of shopping around will help you know what type of rates and terms the lenders would offer you. However, you should refinance the mortgage only if you're planning to stay in the property for a longer period of time. This will help you in offsetting the closing costs that you pay while you refinance the mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you've equity in your property, then you would be able to get a refinance. The rates and terms that you receive will depend upon the housing market. Moreover, it is not mandatory for you to refinance the loan with the same lender. You can contact other local lenders in order to get a refinance. A little bit of shopping around will help you know what type of rates and terms the lenders would offer you. However, you should refinance the mortgage only if you're planning to stay in the property for a longer period of time. This will help you in offsetting the closing costs that you pay while you refinance the mortgage.
Feel free to ask if you've further queries.
Sussane
Thanks Sussane, I did some hunting around and because my loan amt is so small, I can't really do much better but I was advised to just pay more toward my current loan and pay it off sooner.
Can you tell me how to figure out if I pay an extra 350/mth, how soon will my mortgage be paid off?
Thanks again!
Can you tell me how to figure out if I pay an extra 350/mth, how soon will my mortgage be paid off?
Thanks again!
Hi fidoprincess!
Welcome to forums!
If you pay $350 extra toward your loan, you will be able to pay it off 145-months (12 years, 1 months) ahead of schedule. Moreover, you will be able to save $39,644.72 on your total interest savings.
You can check out this extra payment calculator in order to find this out yourself:
http://www.mortgagefit.com/calculators/extra-payment.html
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you pay $350 extra toward your loan, you will be able to pay it off 145-months (12 years, 1 months) ahead of schedule. Moreover, you will be able to save $39,644.72 on your total interest savings.
You can check out this extra payment calculator in order to find this out yourself:
http://www.mortgagefit.com/calculators/extra-payment.html
Feel free to ask if you've further queries.
Sussane
does it make sense to refinance a loan with the value of 164,ooo, to a 30yr & make an additional 5-6oo$$ in principle payments or refinance to a 15yr paying a bit more than current mortgage payment, but unable to make any additional principle payment???
Hi Guest,
If you cannot make additional principal payment, then it's better to refinance the mortgage for a 15 year term period. You should contact your lender and apply for a refinance if you've equity in your property. If you don't have equity, then you won't be able to get a refinance.
Thanks
If you cannot make additional principal payment, then it's better to refinance the mortgage for a 15 year term period. You should contact your lender and apply for a refinance if you've equity in your property. If you don't have equity, then you won't be able to get a refinance.
Thanks
Originak Loan $100000
Rate: 4.625%
Balance 94,0000
Term: 15 years
Refinance amount 45K
Rate: 4.0%
Term: 15 yaers
Closing cost: $350
Do I pay off 50K principal or Refinance with lower rate?
Thank you in advance.
Rate: 4.625%
Balance 94,0000
Term: 15 years
Refinance amount 45K
Rate: 4.0%
Term: 15 yaers
Closing cost: $350
Do I pay off 50K principal or Refinance with lower rate?
Thank you in advance.
At 5.5????..No. What's your credit score? What type of home do you have? Is this currently an FHA streamline? Rate's on a 30yr are in the mid 4's. I'd shop around more. Do your research.
We owe $112.592.50 at 5.750% with ten yrs left. we have been paying an extra $100 a mth on it. we also have a 2nd with a balance of $16,500 at 3.375%. We can refinance a 10 yr at 3.75%. We plan on staying in the house at least another 6 or more years. Thank you
Hi Guest,
As you're planning to stay in the property for the next 6 years, then it will be a good idea to refinance the existing mortgage at a lower rate. However, you'll have to find out whether or not you've equity in your property. If there is no equity, then the lenders will not be ready to help you with a refinance. Also, you should note that when you refinance, you'll be liable for paying closing costs. If you can afford to pay the closing costs, you can go ahead with the deal.
Thanks
As you're planning to stay in the property for the next 6 years, then it will be a good idea to refinance the existing mortgage at a lower rate. However, you'll have to find out whether or not you've equity in your property. If there is no equity, then the lenders will not be ready to help you with a refinance. Also, you should note that when you refinance, you'll be liable for paying closing costs. If you can afford to pay the closing costs, you can go ahead with the deal.
Thanks