Kiaser
Senior Member
Cash: $ 43.05
Posts: 209
Joined: 12 Apr 2006
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| Time to refinance? |
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I've got two homes, one for rental and the other for homestead (although I do rent enough rooms in the homestead to nearly pay for the entire mortgage payments). Since it is unlikely I'll get any help from the government to lower my rates (as I don't have any problem making the payments nor do I hurt at all with these mortgages even if I had no renters), should I look into refinancing now or any other ideas?
Mortgage #1
$178,527
6.5%
27 Years 11 Months Left
$1,579.35
$1,155.10 (Principal & Interest)
$424.25 (Property Taxes & PMI)
Mortgage #2
$166,688.71
6.875%
29 Years 7 Months Left
$1503.26
$1,099.70 (Principal & Interest)
$403.56 (Property Taxes & PMI)
And, of course, neither of these houses are worth more than the balances due (but not too far off).
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Mon Feb 02, 2009 5:55 am |
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Doublebase
New Member
Cash: $ 1.80
Posts: 9
Joined: 25 Jan 2009
Location: Pennsylvania
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I am refieing from 6.875% to 4.875%. Saving me about 500$/month. I would say refie. It won't hury you in any way. You still have close to 30yrs left on both mortgages. Take the money you will be saving and use it to pay down the principal of those two mortgages. That's my two cents.
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Mon Feb 02, 2009 6:16 pm |
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NatalieT
New Member
Cash: $ 1.60
Posts: 8
Joined: 12 Feb 2009
Location: Chicago, IL
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You have to weigh what the cost will be for refinancing to what you will save over the next couple of years. It all depends on how long you plan on keeping the homes. If you keep them for several years then it is worth it now to refinance and save yourself money.
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Thu Feb 12, 2009 9:53 pm |
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Offshore-Wealth.com
Senior Member
Cash: $ 14.80
Posts: 601
Joined: 20 Jul 2005
Location: FREEDOMLAND
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| Re: Time to refinance? |
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quote:
Originally posted by Kiaser
I've got two homes, one for rental and the other for homestead (although I do rent enough rooms in the homestead to nearly pay for the entire mortgage payments). Since it is unlikely I'll get any help from the government to lower my rates (as I don't have any problem making the payments nor do I hurt at all with these mortgages even if I had no renters), should I look into refinancing now or any other ideas?
Mortgage #1
$178,527
6.5%
27 Years 11 Months Left
$1,579.35
$1,155.10 (Principal & Interest)
$424.25 (Property Taxes & PMI)
Mortgage #2
$166,688.71
6.875%
29 Years 7 Months Left
$1503.26
$1,099.70 (Principal & Interest)
$403.56 (Property Taxes & PMI)
And, of course, neither of these houses are worth more than the balances due (but not too far off).
This is a common question, and there is not one answer for everyone, so what I ask my clients is how long they expect to own homes. If you are not planning to move or sell, and you have equity in each, then I would look to refinance given the rates have indeed dropped to more than 2% less than your current ones, and since you are in new mortgages, both near the original 30 year terms, it would make more sense to refinance, but again, you have to have equity, and in a recession where real estate is dropping like a rock, it may not be possible to refinance at all given your estimate of no equity.
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Mon Feb 16, 2009 2:24 pm |
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Shane Watson
Contributing Member
Cash: $ 6.30
Posts: 31
Joined: 04 May 2009
Location: California
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Refinance could be one mandatory tool for mortgage. I had to refinance myself as I found out it was beneficial for me. I took help form a site called editmyloan. They did the planning and calculation for me. So in a way I got out of it easy.
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Tue Jun 16, 2009 11:18 am |
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No-Brainer
Senior Member
Cash: $ 83.45
Posts: 986
Joined: 29 Dec 2005
Location: Oregon USA
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quote:
Originally posted by coaster
My update -- I missed the low. My mortgage broker was gone on vacation. I called his fill-in to get rates and was offered 4.375 for 5/8 discount point. I was shooting for 4.25 at 1 point or less. The offer I got on that day out to be the best offer I got and then rates started shooting up again. I was so damn close to pulling the trigger. Ah well. It was only worth less than $50 a month on my balance, anyway.
Heh heh, you snooze you looze strikes again
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Wed Jun 17, 2009 2:59 pm |
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