Posted on: 25th Oct, 2007 06:25 am
i need to know what would work for me with refinancing. i have a current mortgage with a decent interest rate of 5.83%, i also have a home equity loan with and interest rate of 8.11% for 38,000.00. and i have about 20,000 in credit card debit. my current mrtg is 130,000.00. what would be beneficial for me to do. refinance and pay off the credit card debit..or pay off the home equity loan put everything into one monthly payment??
Joanw01,
Welcome to the forums!
If you refinanced all the debt to 1 loan @ 7.5% interest (just an average your rate could be better or worse) you would have a payment of $1314.52. If that would save you money then it would be a good idea to refinance it all.
It still depends on what you want for the long term... lower payments or lower total costs. If it is total cost you are after, more questions need to be answered...
How long have you had the current mortgage?
What are the interest rates for the credit cards?
What is your income?
How much do you think your home is worth? (if you don't know how to find out go to ''findhomevalue.us'' and fill in the form... this is my website and I will try to locate the value for you and reply back to this thread)
Hope we can help!
Welcome to the forums!
If you refinanced all the debt to 1 loan @ 7.5% interest (just an average your rate could be better or worse) you would have a payment of $1314.52. If that would save you money then it would be a good idea to refinance it all.
It still depends on what you want for the long term... lower payments or lower total costs. If it is total cost you are after, more questions need to be answered...
How long have you had the current mortgage?
What are the interest rates for the credit cards?
What is your income?
How much do you think your home is worth? (if you don't know how to find out go to ''findhomevalue.us'' and fill in the form... this is my website and I will try to locate the value for you and reply back to this thread)
Hope we can help!
I would like lower payments in the end to save some money...I've had my mrtg for 4 years now and I know my place is worth at least 225,000 at this point the interest rates on my card (3) range from 8%--13%, I'm not planning on staying at my current residence forever...maybe another few years thats about it.
That is a good value to have with the new loan amount. You would be spending more probably over 30 years but if you plan on selling the savings in the monthly payment may be worth it. The thing is you would want to be pretty sure of the likelyhood of being able to sell when the time comes. If you use up too much equity it will make it difficult to sell. You might have a real estate agent give you a likely selling price and base your decision off of that.
As far as the loan goes I still would get a fixed rate (they are still low). And I would recommend a higher rate in comparison to keep the closing costs as low as possible. There is a break even period on a refinance that determines if it will be advantageous in your situation.
The only way to find out exactly though is to apply for a loan, at that time you will get your credit score and find out what loan programs you would qualify for. As far as the basic info you provided it looks good for you. But with out the critical information like credit history, income/job history, mortgage history, assets, etc. it is hard to say without just making an educated guess.
Let me know if you have any additional questions.
As far as the loan goes I still would get a fixed rate (they are still low). And I would recommend a higher rate in comparison to keep the closing costs as low as possible. There is a break even period on a refinance that determines if it will be advantageous in your situation.
The only way to find out exactly though is to apply for a loan, at that time you will get your credit score and find out what loan programs you would qualify for. As far as the basic info you provided it looks good for you. But with out the critical information like credit history, income/job history, mortgage history, assets, etc. it is hard to say without just making an educated guess.
Let me know if you have any additional questions.