Posted on: 02nd Jan, 2010 02:20 am
Hi there… if anyone can help… The interest rates are quite low these days n I'm thinking of refinancing. Not sure if I should go for it. I was going through the forums and found there are various things to consider… One of them being - How long will we be in this house? Well – I plan to stay in the property as long as possible. But I'm sure whether or not to refi for a lower payment so that I can save for retirement, should I refi to pay off the house sooner?
What do you say?
What do you say?
hi janet,
there are various things which you need to keep in mind before you refinance your property. your lender will look into your income and credit score while you apply for it. if you do not satisfy the lender's criteria you won't get a loan. also, in the recent times, we've noticed that most of the properties have lost their values. you should note that if the property does not have equity, lenders won't be ready for refinancing.
while you refinance your loan, it would be your discretion whether or not you should save for your retirement or pay off the house sooner. if you refinance your loan, and go for a 15 year loan, then there are chances that you may have to pay the higher monthly payments. thus, you would be able to pay off the mortgage sooner, but there are less chances that you would be able to save for your retirement. on the other hand, if you go for a 30 year loan, you will have to pay lower monthly payments which will help you secure your future.
however, i would personally prefer maintaining a balance between saving and paying off the dues faster. you may go for a 15 year mortgage, pay off the loan quickly and also try to save some dollars for your retirement.
take care.
there are various things which you need to keep in mind before you refinance your property. your lender will look into your income and credit score while you apply for it. if you do not satisfy the lender's criteria you won't get a loan. also, in the recent times, we've noticed that most of the properties have lost their values. you should note that if the property does not have equity, lenders won't be ready for refinancing.
while you refinance your loan, it would be your discretion whether or not you should save for your retirement or pay off the house sooner. if you refinance your loan, and go for a 15 year loan, then there are chances that you may have to pay the higher monthly payments. thus, you would be able to pay off the mortgage sooner, but there are less chances that you would be able to save for your retirement. on the other hand, if you go for a 30 year loan, you will have to pay lower monthly payments which will help you secure your future.
however, i would personally prefer maintaining a balance between saving and paying off the dues faster. you may go for a 15 year mortgage, pay off the loan quickly and also try to save some dollars for your retirement.
take care.
Hi Janet,
The interest rates on home loan are low these days and this is a good time to refinance your existing mortgages. If you get a low interest rate on these loans and your monthly mortgage payments will reduce considerably. Then you can save some amount of money each month for your retirement. If you are planning to stay in the property for long, you should consider taking a 30 year mortgage as your monthly payment would be low.
However, when you refinance you need to pay closing costs. You should stay in the property for long enough to recoup the closing costs. Otherwise, if you move out of the property in about 5 or 7 years without recovering the closing costs, the doing the refinance will not be worth your while.
The interest rates on home loan are low these days and this is a good time to refinance your existing mortgages. If you get a low interest rate on these loans and your monthly mortgage payments will reduce considerably. Then you can save some amount of money each month for your retirement. If you are planning to stay in the property for long, you should consider taking a 30 year mortgage as your monthly payment would be low.
However, when you refinance you need to pay closing costs. You should stay in the property for long enough to recoup the closing costs. Otherwise, if you move out of the property in about 5 or 7 years without recovering the closing costs, the doing the refinance will not be worth your while.
I would definitely need more information. What is your current interest rate? How long have you had your current mortgage for? What is the value of your home? What is the balance on your mortgage?
