Posted on: 31st Aug, 2010 09:38 am
we have six years left on our mortgage at a rate of 5.55. we owe $28,000. we can refinance with the credit union at my husbands place of work for 3 years at 3.75%. the closing costs would be $189.00. is this a good idea or should we just pay more on our principal?
also, thinking about taking out a larger loan to help our son pay off his college debt ($90,000) and have him pay us back at the 3.75 % rate rather than the 7% rate he is paying now. but of course it would take him years to pay this back. he is a pharmacist but doing a one year residency currently so only makes $44,000. he should make 80-90,000 in a year or so. is something should happen to him we would be paying off the rest of the loan, which scares me.
also, thinking about taking out a larger loan to help our son pay off his college debt ($90,000) and have him pay us back at the 3.75 % rate rather than the 7% rate he is paying now. but of course it would take him years to pay this back. he is a pharmacist but doing a one year residency currently so only makes $44,000. he should make 80-90,000 in a year or so. is something should happen to him we would be paying off the rest of the loan, which scares me.
Welcome Fairview,
In my opinion, it is a good option to refinance the mortgage at such a low rate. Moreover, the term of loan payment will decrease and thus, you would be able to own the property free and clear within 3 years.
If you want to help your son pay off the college debts, then you can refinance the loan and get a cash out. However, it's true that if your son fails to pay off the loan, then you would become liable for the dues.
In my opinion, it is a good option to refinance the mortgage at such a low rate. Moreover, the term of loan payment will decrease and thus, you would be able to own the property free and clear within 3 years.
If you want to help your son pay off the college debts, then you can refinance the loan and get a cash out. However, it's true that if your son fails to pay off the loan, then you would become liable for the dues.