Posted on: 04th Apr, 2009 01:27 pm
hello
i currently have owned my home for 4.5 yrs. currently it would appraise at $330000
i am looking into refinancing my mortgages.
my first mortage is:
current: $215000
apr: fixed 6.375%
payment: principal +interest $1452
my 2nd mortgage is a heloan:
current: $67000
apr: fixed 7.49%
payment: $760
am i looking to reduce the amount of payments i make each month and save money over the course of the loans.
question:
can i refinance both the primary and secondary heloan together as one?
should i refinance the primary separate?
should i refinance the primary and secondary loans separately?
any help or suggestions is greatly appreciated.
thank you,
frank
i currently have owned my home for 4.5 yrs. currently it would appraise at $330000
i am looking into refinancing my mortgages.
my first mortage is:
current: $215000
apr: fixed 6.375%
payment: principal +interest $1452
my 2nd mortgage is a heloan:
current: $67000
apr: fixed 7.49%
payment: $760
am i looking to reduce the amount of payments i make each month and save money over the course of the loans.
question:
can i refinance both the primary and secondary heloan together as one?
should i refinance the primary separate?
should i refinance the primary and secondary loans separately?
any help or suggestions is greatly appreciated.
thank you,
frank
Welcome francisprice,
With the rates as low as they are right now that definately sounds like a good idea to me! Currently you are just a little above 85% loan to value ratio so as long as your credit is OK then I'm sure you can qualify for a lower interest rate. My parents just refi'd their first and got a rate as low as 4.85%! If you can qualify for close to the same that would be a huge savings for you over time.
Although I have to admit, I would shoot for a 20 year loan as opposed to a 30 year loan. If you do the math, say your paying 5% interest on a 282K loan, your payment for a 30 years would equal around 1500-1600/month whereas if you took that some loan out for 20 years then your payment would be around 1800-1900/month! That's only 300 more a month to knock your loan off in 10 fewer years, and you're still managing to save yourself atleast 300 dollars a month.
If anyone thinks I'm wrong please explain why but I think you should go for it!
Good luck.
With the rates as low as they are right now that definately sounds like a good idea to me! Currently you are just a little above 85% loan to value ratio so as long as your credit is OK then I'm sure you can qualify for a lower interest rate. My parents just refi'd their first and got a rate as low as 4.85%! If you can qualify for close to the same that would be a huge savings for you over time.
Although I have to admit, I would shoot for a 20 year loan as opposed to a 30 year loan. If you do the math, say your paying 5% interest on a 282K loan, your payment for a 30 years would equal around 1500-1600/month whereas if you took that some loan out for 20 years then your payment would be around 1800-1900/month! That's only 300 more a month to knock your loan off in 10 fewer years, and you're still managing to save yourself atleast 300 dollars a month.
If anyone thinks I'm wrong please explain why but I think you should go for it!
Good luck.