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Company Loan Type APR Est. Pmt.

Should I refinance or pay extra for principal?

Posted on: 21st Jun, 2010 06:44 pm
hi,
i have 28 more years left with principal balance of $199,000 with rate of 5.875% and monthly pmt of $1483.96...i can refinance it now to 15 years for a rate of around 4.3% plus closing fee that lending tree will not let me know yet so i will be paying around $1,800 per month for 15 years.

i am also planning on paying off the whole principal amount in about 8 years. is it worth refinancing now or just keep it the same and pay the whole amount off in 8 years. if i do refinance how much will i be saving. and also anyone know of a good lender to refinance with? thanks so much
A few points to consider:

1) Yes it's worth refinancing
2) You don't know your closing costs from Lending Tree because they are busy selling your info to the highest bidder
3) A 15 year on that loan amount at 4.375% should have zero closing costs

It's worth refinancing because the amount you save in interest is significant, assuming you do so with little or no closing costs. When you are short term, you need to keep costs down to make it worth while. As for a good lender, it depends on where you are.
Posted on: 21st Jun, 2010 07:18 pm
hi greg3,
I live in Virginia, and my original loan is through Suntrust bank. Should I go through a national bank like Suntrust or Bank of America for my refinancing needs? thanks
Posted on: 22nd Jun, 2010 04:23 am
Lienvo- Greg is correct on all points. You should absolutely look at refinancing and should run not walk away from anyone who is affiliated with lending tree. Your personal information (including social security number) is being sold to about 6 different lenders nationwide who will be hounding you with phone calls and emails within the hour. Is that what you signed up for? They pay big bucks for your info and those costs will be padded onto your costs.
Posted on: 22nd Jun, 2010 06:23 am
Guest-I suppose we are all biased in one way or another but in my opinion I'd say to stay away from the big guys. They were the ones your hard earned tax dollars went to for their ''bail out'' and now they are reporting record profits laughing all the way to well....themselves.

Let us know the details on your loan amount, home value, FICO score and location and we can let you know if it would be worth it for you to refinance.
Posted on: 22nd Jun, 2010 06:27 am
"I live in Virginia, and my original loan is through Suntrust bank. Should I go through a national bank like Suntrust or Bank of America for my refinancing needs? thanks"

I'm not a big fan of banks, although I am a bit biased. A broker can place your loan at a bank like Suntrust, it's just my opinion that you will get much better service, and often a better rate going through the broker.
Posted on: 22nd Jun, 2010 05:10 pm
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