Posted on: 19th Aug, 2010 12:56 pm
I have $76,690. remaining on my original loan of $115,000. Current rate is 5.625% on a 30 yr fixed.
The new rate would be 4.375% w/a reduction in monthly payment by $50.00 and the term reduced to 20 yrs.
The GFE is around $3,400.
Does this sound like a good idea? I plan to stay in the home for many yrs.
Thanks in advance!
The new rate would be 4.375% w/a reduction in monthly payment by $50.00 and the term reduced to 20 yrs.
The GFE is around $3,400.
Does this sound like a good idea? I plan to stay in the home for many yrs.
Thanks in advance!
hi guest,
as far as i can understand, it would be a good idea to refinance the loan with the terms and conditions that you've mentioned here as you plan to stay for many years. however, if you haven't shopped around, then i would suggest you to do so and get to know what type of rates and terms will be offered to you by other lenders. this will give you an idea which one to go for.
as far as i can understand, it would be a good idea to refinance the loan with the terms and conditions that you've mentioned here as you plan to stay for many years. however, if you haven't shopped around, then i would suggest you to do so and get to know what type of rates and terms will be offered to you by other lenders. this will give you an idea which one to go for.
I would look at a 15 year with no closing costs as long as you can afford the larger payment. The rate would be similar or possibly lower and your GFE would be $0 or a credit. It depends on your situation but you should look for a no closing cost loan first as you rate will be lower due to the current rates and you won't pay any out of pocket expenses.
Why are your existing payments only about $532 monthly?
Do you have an ARM?
If mortgage started at $115,000, a 30 year fixed at 5.25% would be a monthly payment of $662.
If you have an ARM, refinancing to 20 fixed or 15 fixed is probably a good idea. Refinancing to lower rate by just $50 a month by itself does not sound like a great idea.
Do you have an ARM?
If mortgage started at $115,000, a 30 year fixed at 5.25% would be a monthly payment of $662.
If you have an ARM, refinancing to 20 fixed or 15 fixed is probably a good idea. Refinancing to lower rate by just $50 a month by itself does not sound like a great idea.
