Refinance or pay extra - Which one is the better option?

I currently have a 5.25% 30 yr FHA loan for a year now. Monthly p&i $2428 + &197 mip. Should I streamline refi at 4.25% with new p&i ~$2140 but new mip $322 bec of new FHA guideline. We plan on staying in the house for a long time.

Hi Georgie!

Welcome to forums!

As you are planning to stay in the property for a long period of time, it will be a good option to refinance the mortgage and reduce your interest rates to pay the mortgage. However, you should have at least 20% equity in your property in order to refinance your home loan.

Feel free to ask if you've further queries.

Sussane

Policy70, this fee is due to the lender in case you don't get the loan for any reason (you changed your mind, your good faith estimate wasn't accurate and your interest rate went up so you declined the offer or you simply didn't get the loan, etc...). The lender tries to estimate if you will get the loan by looking at the information you provided. If you lied or just reported inaccurate information then you need to pay a fee for the work the bank has been doing for you to prepare your loan. This fee is legal and you shouldn't worry about it once you made the decision to get the loan and are confident about the information you provided to your bank.

Is there a policy with freddie mac that a person whose home is zoned as a single family residence cannot use rental income from renting the bottom half of that home as monthly income in determining the DTI?

i owe $40,000 on a 30 year mortgage at 4.875%. i can refinance at an accelerated fixed rate of 3.50 for 12 years with my same lender.
is it worth it? i plan to remain in the house. i am 70 years old.

Hi A.S. VEGA!

Welcome to forums!

As you're planning to remain on the same property, it will be a good option to refinance the existing home loan. However, you should note that when you refinance the mortgage, you'll be liable for paying the closing costs. If you can afford to pay that, then you should contact your lender and apply for a refinance.

Feel free to ask if you've further queries.

Sussane

I'm paying$301 a month is it better to pay extra to my regular payments of pay the principal. What would happen if of course I make my regular monthly payments and I also pay toward the principal $50 every month.
is this is going to reduce my monthly payments or the total amount I owe??

Hi Guest,

Your query has been answered in the given page:
http://www.mortgagefit.com/postdeal/about46358.html#190915

Take a look at it. Hope it helps you.

Thanks

We have a 30 year mortgage at 5.85% with a balance of $125,000 and a helco at 4.50% with a balance of $75K. Our monthly mortgage payment is $1050 and the helco at $575. We do pay extra to both loans. Should we refi or continue to make extra payments?

Thank you!

Haw

Welcome Guest,

You can refinance both the mortgages into one if you have equity in your property. This will make you liable for one mortgage and then you can pay extra toward the loan in order to pay it off faster.

I have 23.6 years left at a 5% rate on a $417,000 mortgage. I can refinance and get 4% at 20 years but then I have to pay closing costs. What should I do and if I decide to refinance then what am I really saving?

i just bought the house for six month and thinking about refinance my house but don't know if i should refinancing to 30 years with interest about 5.125 or refinancing to 20 years with interest 3.875 which pay about $300 more then 30years. but someone told me to go with 30 years and save that 300 to make an extra payment each year is better then go with 20 years refinance.
Please advice,
Thanks

Hi Howard,

If you're planning to stay in the property for a longer period of time, then it is a good option to refinance the mortgage. You'll be able to offset the closing costs that you pay while refinancing the mortgage if you stay in the property for a longer period of time.

To maica,

If you go for a mortgage with a 20 year term period, it will help you in getting debt free faster and you will be able to own the property free and clear within 20 years. Now, it will be your discretion whether or not you want to go for a 30 year mortgage or a 20 year mortgage.

I am currently living in a home with a loan owing about $177,000. My monthly P&I payments are about $890/month. I have another property that I am trying to sell and hope to net about $50,000 from the sale. I want to lower my current monthly housenote. When (and if) my other home sells what is the best way to use that money to lower my current home payment?

Hi LadyFerrell,

If you have equity in your property, then you will be able to refinance the mortgage using the sale proceeds as your down payment. As the rates are going low, you'll be able to get lower rates after you refinance your existing mortgage.

Thanks