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!
my current balance is $158,000 on a 20-yr loan with 13 years left on the loan at a 5% interest rate. i would like to know whether i should refinance to a 15-yr loan at 4.5%. i will end up paying 2 years longer but i was told that my monthly payment will decrease by $200. i have actually been paying an additional $200 towards the principal over the past year and plan on continuing this. is it worth it to refinance or just pay extra in principal?
Welcome Jay,
If you're planning to stay in the property for a longer period of time, then you can refinance your existing mortgage and take advantage of the lower rates. This will help you in offsetting the closing costs that you will be paying while refinancing the mortgage. Thus, it will help you in saving money.
If you're planning to stay in the property for a longer period of time, then you can refinance your existing mortgage and take advantage of the lower rates. This will help you in offsetting the closing costs that you will be paying while refinancing the mortgage. Thus, it will help you in saving money.
I currently have a 30 yr. mortagage at 6.25%. I have 18 years left to pay. My monthly payment it $738 and I would like to increase my monthly payments to $1,000 per month to pay down the loan. I have an opportunity to refinance to a 15 year loan at 4.37% for a cost of $700. Would it make sense to refi or just keep my current loan and pay the extra?
Thanks!
Thanks!
Welcome Rally,
Are you planning to stay in the property for a long period of time? If yes, then it will be a good option to refinance the mortgage into a 15 year loan at a lower interest rate.
Are you planning to stay in the property for a long period of time? If yes, then it will be a good option to refinance the mortgage into a 15 year loan at a lower interest rate.
To be accurate on the answer, was the original loan amount $120,000 (if not what was it and when was the loan taken out month/year), do you itemize your tax deductions (yes tax bracket) and also how long do you intend to stay in the home?
Provide this and I can tell you which loan will have the lowest net cost for any given year.
Provide this and I can tell you which loan will have the lowest net cost for any given year.
Hi muffin!
Welcome to forums!
If you're planning to stay in the property for a longer period of time, then you can refinance the mortgage and take advantage of lower interest rates prevailing in the market. However, you should keep in mind that you will be liable for paying off the closing costs once you refinance the mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you're planning to stay in the property for a longer period of time, then you can refinance the mortgage and take advantage of lower interest rates prevailing in the market. However, you should keep in mind that you will be liable for paying off the closing costs once you refinance the mortgage.
Feel free to ask if you've further queries.
Sussane
Muffin,
The short answer is probably no, however, you didn't provide enough information to give an accurate answer.
Key items you left out are what is your current interest rate, what type of loan do you currently have (30 year fixed, 5 year ARM, etc.) what is the current value of the property and how is your credit/credit scores.
If you only have 5 years to go then most of your regular monthly payment is going towards principal. Since you are adding extra each month, it looks like you want to pay off the loan sooner. If you did refinance, you would want to keep the amortization term to 5 years or less, otherwise you will end up paying longer on your mortgage than you will be now.
Provide the answers to what you left off and you can get the right answer.
The short answer is probably no, however, you didn't provide enough information to give an accurate answer.
Key items you left out are what is your current interest rate, what type of loan do you currently have (30 year fixed, 5 year ARM, etc.) what is the current value of the property and how is your credit/credit scores.
If you only have 5 years to go then most of your regular monthly payment is going towards principal. Since you are adding extra each month, it looks like you want to pay off the loan sooner. If you did refinance, you would want to keep the amortization term to 5 years or less, otherwise you will end up paying longer on your mortgage than you will be now.
Provide the answers to what you left off and you can get the right answer.
We are married have 2 home loans on our current property valued at 315,000.00. Total still owed 290,000. Our !st is a fixed 15 yr loan will be payed in 2018. Our 2nd is a fixed 30 yr loan at 6.9% apr and has 26yrs left with 155,00.00 left owed . We have an option with a new loan FHA with cost to refiance 14,000.00 dollars includes mortgage insurance 224.00 a month new payment including tax and insurance and mip 2098.00 our new apr 5.6% (interest rate is 4.7%). Preplexed what to do.
current house value 315,000.00. My credit score is 780 to 740. Our 2 home loans are both fixed our 1st is 15 yr to be paid off in 2018 we owe 135,000.00 our 2nd is fixed 30 yr with 26 yr left owe 155,000.00
Hi Guest!
Welcome to forums!
If you have equity in your property and if you can afford to pay the closing costs, then you can go for the FHA refinance. However, you will be able to offset the closing costs only if you stay in the property for a longer period of time.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you have equity in your property and if you can afford to pay the closing costs, then you can go for the FHA refinance. However, you will be able to offset the closing costs only if you stay in the property for a longer period of time.
Feel free to ask if you've further queries.
Sussane
i have paid 62 payments of a 180 month loan,, interest rate 6.50 i can afford a higher payment now my balance is 59000 on a 80000 remodel loan,, should i refinance or just pay more and be done with it sooner,,,,I will retire in 6 years and would like to be debt free then,,this is my only debt now
Hi Guest,
As you want to get debt free within 6 years, it will be better if you could make extra payments toward your loan and pay off the dues in full asap.
As you want to get debt free within 6 years, it will be better if you could make extra payments toward your loan and pay off the dues in full asap.
we're half-way through a 30-year mortgage at 6.625% and can refi, again a 30-year, at 4.25. besides bringing down our monthly payments are there any other savings?
Welcome sunni,
The refinance will help you in lowering your monthly payments. You will be able to save the extra amount that you were making till now. However, you can even check out if you can refinance the mortgage by a 15 year loan. This will help you in paying off the dues faster.
The refinance will help you in lowering your monthly payments. You will be able to save the extra amount that you were making till now. However, you can even check out if you can refinance the mortgage by a 15 year loan. This will help you in paying off the dues faster.