Posted on: 19th Aug, 2010 10:53 am
hi,
i have about 22 years left on a 30 year conventional loan, the current interest rate is 5.875%. i owe $190000, and the house is worth ~$280000. we also have a $40,000 heloc that we've run up.
our credit scores are about 700...
i'm trying to decide if it makes sense to refinance into a new 30 year loan or not. i haven't gotten a quote on a rate yet, pnc (my current bank) shows loan rates anywhere from %4.375-%5, and i'm not sure about closing costs.
we have two young kids (6 and 9), and plan on staying in the house at least until the kids are out of college (i.e. a long time).
any suggestions? is it worth it? what are the ramifications of starting the loan over, what about the taxes on the lower interest?
thanks in advance!
i have about 22 years left on a 30 year conventional loan, the current interest rate is 5.875%. i owe $190000, and the house is worth ~$280000. we also have a $40,000 heloc that we've run up.
our credit scores are about 700...
i'm trying to decide if it makes sense to refinance into a new 30 year loan or not. i haven't gotten a quote on a rate yet, pnc (my current bank) shows loan rates anywhere from %4.375-%5, and i'm not sure about closing costs.
we have two young kids (6 and 9), and plan on staying in the house at least until the kids are out of college (i.e. a long time).
any suggestions? is it worth it? what are the ramifications of starting the loan over, what about the taxes on the lower interest?
thanks in advance!
Welcome picklerelish,
In my opinion, it would be a good idea to refinance the loans. But if you don't have equity in the property, it would be difficult for you to get a mortgage refinance. You should contact an appraiser and find out if you have equity in your property. If you do have equity, then it would be a good option to refinance the loan as you plan to stay in the property for a long period of time.
In my opinion, it would be a good idea to refinance the loans. But if you don't have equity in the property, it would be difficult for you to get a mortgage refinance. You should contact an appraiser and find out if you have equity in your property. If you do have equity, then it would be a good option to refinance the loan as you plan to stay in the property for a long period of time.
Hi Picklerelish,
If you plan on staying the home long term, yes it will be worth it.
Here are a few options to consider.
30 year fixed at 4.125% on a new loan of $196,000 = $971.29 + taxes and insurance.
20 year fixed @ 4% on a new loan of $196,000 = $1,214.45 + taxes and insurance. This way you basically cut 2 years off of your current mortgage
15 year fixed @ 3.75% on a new loan of $194,000 = $1,442.55 + taxes and insurance. This option cuts off 7 years from your current mortgage
Compare the numbers above to what you're paying right now for principle and interest to see which option works for you.
If you plan on staying the home long term, yes it will be worth it.
Here are a few options to consider.
30 year fixed at 4.125% on a new loan of $196,000 = $971.29 + taxes and insurance.
20 year fixed @ 4% on a new loan of $196,000 = $1,214.45 + taxes and insurance. This way you basically cut 2 years off of your current mortgage
15 year fixed @ 3.75% on a new loan of $194,000 = $1,442.55 + taxes and insurance. This option cuts off 7 years from your current mortgage
Compare the numbers above to what you're paying right now for principle and interest to see which option works for you.