Jump to content

should i refi?


sleewell

Recommended Posts

  • Members

considering refinancing my mortgage, anyone else looking?

currently i am at 4.875% with a 123k remaining balance. zillow and property tax records value the home in the upper 140s but i am not looking to take any money out, just want to lower my rate and get this debt paid off quicker. i am getting other quotes but the bank i work at has proposed 3.375% with only 1900 in closing costs (rolled into new loan) and i would only have 350 in out of pocket expenses for an appraisal.

right now i am paying 150 extra each month and still plan to do that (or more) moving forward either way. i plan to keep the house for the long haul; possibly renting it out if i ever decide to move.

I had them amortize my exsisting loan vs what they are proposing. if i stick with my current loan i will be paid off in 228 months, they have the new loan getting paid off in 189 months but that would be even sooner because i would get a refund from my current escrow that i can apply directly to the balance.



what do you think? seems like the no brainer decisions always have other things to think about which is why i am asking.

thanks,

bill

Link to comment
Share on other sites

  • Members

do it and setup half payments, bi-monthly and that will reduce # of years. i think on a 30-year loan it knocks off 7 years. this is b/c you are paying half of your mortgage on the first of the month, before interest accrues on your mortgage by the end of the month. i just refinanced from 4.875 to 3.625 and went 20-year loan, bi-monthly and will have it paid off in 15 years.

Link to comment
Share on other sites

  • Members

do it and setup half payments, bi-monthly and that will reduce # of years. i think on a 30-year loan it knocks off 7 years. this is b/c you are paying half of your mortgage on the first of the month, before interest accrues on your mortgage by the end of the month. i just refinanced from 4.875 to 3.625 and went 20-year loan, bi-monthly and will have it paid off in 15 years.

Link to comment
Share on other sites

  • Members

 

Quote Originally Posted by Kenny Powers

View Post

honestly dont see any reason why you wouldn't

 

yeah i know. i just hate to make such a large decision without doing as much research as possible.



i would have to time the appraisal correctly but that is not a huge deal.




+1 on paying every 2 weeks, that really helps out.

Link to comment
Share on other sites

  • Members

 

Quote Originally Posted by Kenny Powers

View Post

honestly dont see any reason why you wouldn't

 

yeah i know. i just hate to make such a large decision without doing as much research as possible.



i would have to time the appraisal correctly but that is not a huge deal.




+1 on paying every 2 weeks, that really helps out.

Link to comment
Share on other sites

  • Members

I'm kind of a noob when it comes to this stuff, but isn't starting your loan over sort of negate any savings you would receive from the refi? I understand if you end up dropping the years, but how much do you really ave by starting over again?

Link to comment
Share on other sites

  • Members

I'm kind of a noob when it comes to this stuff, but isn't starting your loan over sort of negate any savings you would receive from the refi? I understand if you end up dropping the years, but how much do you really ave by starting over again?

Link to comment
Share on other sites

  • Members

 

Quote Originally Posted by "sasquatch"

View Post

do it and setup half payments, bi-monthly and that will reduce # of years. i think on a 30-year loan it knocks off 7 years. this is b/c you are paying half of your mortgage on the first of the month, before interest accrues on your mortgage by the end of the month. i just refinanced from 4.875 to 3.625 and went 20-year loan, bi-monthly and will have it paid off in 15 years.

 

Be careful about these. With the ones I've looked at they simply deposit your first monthly payment and then apply it at the same time as the second one which means the savings has nothing to do with your principle being lowered twice a month, it's because you end up making an extra payment or something like that per year. It's been a long time since I looked at one of these programs so I forget the details, but I do recall that in the end I just stuck with paying extra principle every month on my own.
Link to comment
Share on other sites

  • Members

 

Quote Originally Posted by "sasquatch"

View Post

do it and setup half payments, bi-monthly and that will reduce # of years. i think on a 30-year loan it knocks off 7 years. this is b/c you are paying half of your mortgage on the first of the month, before interest accrues on your mortgage by the end of the month. i just refinanced from 4.875 to 3.625 and went 20-year loan, bi-monthly and will have it paid off in 15 years.

 

Be careful about these. With the ones I've looked at they simply deposit your first monthly payment and then apply it at the same time as the second one which means the savings has nothing to do with your principle being lowered twice a month, it's because you end up making an extra payment or something like that per year. It's been a long time since I looked at one of these programs so I forget the details, but I do recall that in the end I just stuck with paying extra principle every month on my own.
Link to comment
Share on other sites

  • Members

 

Quote Originally Posted by diocide

View Post

I'm kind of a noob when it comes to this stuff, but isn't starting your loan over sort of negate any savings you would receive from the refi? I understand if you end up dropping the years, but how much do you really ave by starting over again?

 



you are starting over only in the term length, you keep your exsisting balance which is much lower than when i took out the loan. so basically you are getting a new loan on your exsisting lower current balance amount and you also get the rates they are offering now which are also lower than when i orginated the loan.

Link to comment
Share on other sites

  • Members

 

Quote Originally Posted by diocide

View Post

I'm kind of a noob when it comes to this stuff, but isn't starting your loan over sort of negate any savings you would receive from the refi? I understand if you end up dropping the years, but how much do you really ave by starting over again?

 



you are starting over only in the term length, you keep your exsisting balance which is much lower than when i took out the loan. so basically you are getting a new loan on your exsisting lower current balance amount and you also get the rates they are offering now which are also lower than when i orginated the loan.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...