Refinancing house...

[jinjuku]

Doing this through our existing bank so the fees are only going to be $99. Period.

Going to 3.74% (from 5.13%) and this gives us a payoff in 13 years (been here for 2). That's even without the 10% we pay additionally on principal every month. Payments stay the same

 

[its phillip]

Very nice

 

[GlocksRock]

I'm refinancing as well, just waiting to get the clear to close, I can't wait to start saving some money. I'm going from 6% to 3.75%, not too shabby if you ask me.

 

[Matt34]

Screw home ownership, way over-rated IMO.


Yes, I'm bitter.

 

[jinjuku]

Sry Matt. I seem to remember something about your 'experiences' in home ownership.

For us we purchased at the perfect storm time: Depressed housing prices, low interest rates (at the time), the $8K house tax credit.

For us it is a 'pinch us we must be dreaming'. Now add to this for $99 with no fees rolled into the loan we go down to 13 years vs 30 and no increase in monthly. This just keeps getting better.

 

[darien87]

We just signed our loan papers last Friday. Going from 4.875% to 3.5%. Our payments should go down about $200 a month.

But we've got a supplemental property tax bill of $1,750 due at the end of this month so we have to give the Escrow people a check for $2,600 tomorrow. This covers the tax and all the fees and stuff. But we have $2,700 already in Escrow that we'll get back in a few weeks so we'll actually end up making $100 on the refi!!!

Now if the housing market will just turn around so we can get some equity and stop paying mortgage insurance.

 

[jinjuku]

We were fortunate to have 20% down. No PMI

 

[majorloser]

I just went down to a 15-year @ 3.6% and it's only costing me about $70 more per month. Best part is I end saving well over $60,000 in interest over the term of the loan by moving the loan to 15-years instead of the 22 years left on my old 30-year mortgage. Luckily I'm not upside down in my home. My home was build in 2002 just before the housing boom here in Florida.

I also paid $0.00 for the new loan for closing costs. The amounts for the closing expenses was applied back to the loan as credits, not added to the principle.

Better hurry if you are thinking about doing something. The rates are starting to go back up. It's all part of the HARP program. I believe the program was set up to help homeowners who are upside down in their mortgage.

Home Affordable Refinance Program (HARP)

 

[GO-NAD!]

Mortgage? What's a mortgage? Oh, wait a minute; I remember now - that's the thing I paid off five years ago.

 

[billy p]

Bank called us over the phone and offered us to blend and extent our current mortage. Our payments incresed by $8.00 monthly... taking our payment to $1608 per month although we pay it bi-weekly our interest for the next 5yrs will go down from 5.30% to 3.25% and we'll be mortage free in 63 months...woohoo....

Best part here was we didn't even go into the branch it was all handled over the phone and the contract was delivered to us!

 

[STRONGBADF1]

Mortgage? What's a mortgage? Oh, wait a minute; I remember now - that's the thing I paid off five years ago.

5 months ago for us.


It's very important for home owners to look into current rates that's for sure. I wish we had the extra scratch to buy a vacation home at the moment...

 

[GO-NAD!]

5 months ago for us.


It's very important for home owners to look into current rates that's for sure. I wish we had the extra scratch to buy a vacation home at the moment...

Great feeling, eh? We've discussed getting a cottage, but it's a lot of cash to tie up in something you'll only get occasional use of.

 

[billy p]

Great feeling, eh? We've discussed getting a cottage, but it's a lot of cash to tie up in something you'll only get occasional use of.

You reside in a beautiful part of Canada no need for a cottage...IMO. Now if you lived near a large city "RAT" race like some of us having a weekend property would be something to look forward too. We have equity but your right it's a lot of cash to tied up not to mention the added expense of carrying a second home.

 

[GO-NAD!]

You reside in a beautiful part of Canada no need for a cottage...IMO.

You're a very intelligent man, Billy and absolutely right.

 

[BMXTRIX]

It is all starting over for me. We are settling on a new home and moving out of our current home in a couple of weeks. The plus side is that we locked in a 3.5% rate for the 30 years and even with the bigger house, we only saw our payments jump by about $100 a month for principle & interest... Unfortunately, it's up another $250 a month for taxes!

Ah well, what's it matter that after I pay the mortgage off I will still be paying over $700 a month just in taxes to live in my home?

 

[gholt]

Ours has ~ 11 or 12 yrs @ 4% with my mom. I'm debating refi if it would end up saving a year or two. One year would save ~ $15,000. So, it may be worth it or it may be just easier to increase our pmt.

 

[BMXTRIX]

Ours has ~ 11 or 12 yrs @ 4% with my mom. I'm debating refi if it would end up saving a year or two. One year would save ~ $15,000. So, it may be worth it or it may be just easier to increase our pmt.

If you are able to get a rate about 1% less and you have about $150K in outstanding loans, then it would take about 4 years to recoup the money spent on the refi. If you only have about $75K in loans, then it would take about 8 years to break even on the costs of the refi if only saving about 1%.

Of course, this all depends on the fees associated with the refi that you have to pay out.

I would just crunch the numbers and see what makes the most sense. Generally, if you can knock it down a solid point, then the refi is worth it in the long run.

 

[gholt]

If you are able to get a rate about 1% less and you have about $150K in outstanding loans, then it would take about 4 years to recoup the money spent on the refi. If you only have about $75K in loans, then it would take about 8 years to break even on the costs of the refi if only saving about 1%.

Of course, this all depends on the fees associated with the refi that you have to pay out.

I would just crunch the numbers and see what makes the most sense. Generally, if you can knock it down a solid point, then the refi is worth it in the long run.

The balance of the note is a little below $140, and I believe that the current rate for the 10yr is ~ 3-3.25% annualized after fees. The tricy part would be getting the house to appraise for the right amount to get the entire balance to be in the 80% LTV, and the fact that the mortgate is with my mom, so it isn't held with a mortgate company. So, the new loan would be considered 100% cash out. So, the fees are higher, etc. I'll have to crunch the numbers and see where it takes me. It looks like a good deal, but it all depends on how much I can get refied at the 3%.

 

[lsiberian]

Ours has ~ 11 or 12 yrs @ 4% with my mom. I'm debating refi if it would end up saving a year or two. One year would save ~ $15,000. So, it may be worth it or it may be just easier to increase our pmt.

I never want to owe family again. Thanksgiving dinner just doesn't taste the same. I'd get a real loan and refinance it to pay of your mom, but that's me.

 

[gholt]

I never want to owe family again. Thanksgiving dinner just doesn't taste the same. I'd get a real loan and refinance it to pay of your mom, but that's me.

You must listen to Dave Ramsey. For the present, the loan works, but I'm looking on getting it refinanced out of her name.