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!
30 years loan, i have 25 years left. current rates 6.5%. new loan is 15 years at 4% . some one say yes, some noe say no . i am confuse? please help . thanks
Hi bingo!
Welcome to forums!
I personally feel that a new loan with a term of 15 years and interest rate of 4% will be a good option to go for. This will not only help you in saving money but you will be able to get the property free and clear sooner. However, you should note that in order to refinance the mortgage, you would be liable for paying the closing costs. Unless you stay in the property for a longer period of time, you won't be able to offset the closing costs.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I personally feel that a new loan with a term of 15 years and interest rate of 4% will be a good option to go for. This will not only help you in saving money but you will be able to get the property free and clear sooner. However, you should note that in order to refinance the mortgage, you would be liable for paying the closing costs. Unless you stay in the property for a longer period of time, you won't be able to offset the closing costs.
Feel free to ask if you've further queries.
Sussane
If you've got a 30 year fixed rate at 6.5% with 25 years to go and can handle the higher payment with a 15 year at 4% and won't be moving out of the home soon then the refinance makes perfect sense.
To know more precisely what the benefit would be to refinance, it will depend on what your current loan amount is, your income tax bracket assuming you deduct mortgage interest from your taxes, how long you intend to stay in the home and what your closing costs are.
Just make sure you are getting the right deal from the right company before moving forward. Also, any quotes you get are just that until you complete an application get pre-approved and lock in your interest rate. That 4.00% you got quoted could easily become a lot higher by the time you decide to proceed forward.
To know more precisely what the benefit would be to refinance, it will depend on what your current loan amount is, your income tax bracket assuming you deduct mortgage interest from your taxes, how long you intend to stay in the home and what your closing costs are.
Just make sure you are getting the right deal from the right company before moving forward. Also, any quotes you get are just that until you complete an application get pre-approved and lock in your interest rate. That 4.00% you got quoted could easily become a lot higher by the time you decide to proceed forward.
You should take care in taking decision.
I am thinking of refinancing by combining a mortgage and equity loan.
Morgage is 80,000 at 6.5 and equity loan is 55,000 a 2.25. Is it a good to combine and refnance at 4.875?
Morgage is 80,000 at 6.5 and equity loan is 55,000 a 2.25. Is it a good to combine and refnance at 4.875?
Heyward, that's too little information for a proper answer. You didn't indicate the term of the proposed loan. Nor did you note the existing length of time you have remaining on each of these two loans. That's information that would allow someone here to reasonably comment on your question.
Certainly, the shorter the term of the new loan, the better your situation would be. You most definitely don't want to be refinancing for a 30-year period, for example; which would cost you many thousands of dollars in interest costs over time.
Certainly, the shorter the term of the new loan, the better your situation would be. You most definitely don't want to be refinancing for a 30-year period, for example; which would cost you many thousands of dollars in interest costs over time.
currently owe 143,000 with 5.625% rate at 11 years left. at 4.00 rate for 15 years refi. with $4000 closing fees would it make sense. planning to stay forever at current location.
if you plan to stay in the property for a longer span of time, then you can refinance your mortgage and take advantage of the low rates. however, you should also note that refinance will increase the time period of paying off the loan. if you're comfortable with that, then you can definitely refinance your mortgage.
I have $19,882.00 left on a 15 year mortgage I took out in 2001-I already am paying the equivalent of an extra payment each year. it is at 6.5%fixed -also did improvements with a home equity line of credit-20,852.oo at3.5 %variable. I'm retired-my new car paid off-should I just pay these off as is--or refinance the 41,000-do not know if they will refinance such a small amount-don't really want extra money--thanks
Hi Catherine,
I think it won't be a good option to refinance such a small amount now. It will be better if you could continue paying off the existing mortgage and get rid of it so that you can own the property free and clear.
Thanks
I think it won't be a good option to refinance such a small amount now. It will be better if you could continue paying off the existing mortgage and get rid of it so that you can own the property free and clear.
Thanks
I bought my house four years ago and I have $170,000 left on a 30year mortgage 5.65 fixed interest.I am going to closing my lone with 20 year and 4.375 fixed tomorrow.It is going to cost me $ 2700.The refinancing just lowering my monthly payment $50 less .and I am wondering if it is a right decision to refinance or should I just pay more monthly toward principal and pay off my lone faster .thanks
Hi SHERRY,
If you refinance the existing mortgage, it will not only lower your mortgage payments but will also lower the term period of the loan. However, yes, it is true that you will have to pay a lump sum amount as closing costs when you refinance your mortgage. So, now it will be your discretion whether or not you will pay extra toward your mortgage or refinance the loan.
Thanks
If you refinance the existing mortgage, it will not only lower your mortgage payments but will also lower the term period of the loan. However, yes, it is true that you will have to pay a lump sum amount as closing costs when you refinance your mortgage. So, now it will be your discretion whether or not you will pay extra toward your mortgage or refinance the loan.
Thanks
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