I have cold feet on my mortgage refinancing, you think that?

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I’m for the owners of a first home and I have in my house nearly three years. I have good credit and I never missed a mortgage payment. Recently, my lender contacts me on the new HARP program prompts me to refinance. I let them give me a good faith estimate done and it seems that I have for this funding to qualifizieren.Hier my data – after our payment of 10%, our loans came to $ 200,700. Our fixed interest rate of 6.375% and we currently pay about $ 1,570 per month including taxes, insurance and PMI. In our current payment rate, we’ll base and up to 78% in about 2 years, we look at that drop ~ $ 80 PMI payment dann.Die GFE are priced at 5.375%, which would be our payment of approximately $ 140 per month and the fall gesperrt.Jetzt use our 30-year mortgage, according to our current payment, we paid approximately $ 57,000 in monthly installments, but only about $ 6.2 K blew the more important. Just typing makes my knees weak. I understand that the front end of life is a mortgage payment in the strong interest and a good chunk of that monthly payment goes to other things such as property insurance, PMI, taxes, etc. non’m but do not know what I feel and go back to “lose” payments of 3 years. Our client is currently about 194.000.Die refinancing costs me about $ 4100 with 500 through pre-and the rest rolled into the loan. In other words, we’re almost back to the original 200k loan with a low monthly Zahlung.Ist too much loss of land and is likely to be useful in the long term? In my calculations, we would without doubt that the money in about 30 months and we will be in the house another 5 years before you start trying to sell. So part of me feels like it makes sense, but if the loan resets now we are “losing” in essence, the $ 50,000? I know probably not the right way of thinking, but it is what it knows ist.Ich, 6.375 is high and, according to current figures on bankrate.com is unreasonable 5.375 – primarily with the harp and a program to traditional valuation etc. Comprehensive Refinancing – but please let me know what you think of this offer and if you have any comments or Anregungen.Vielen Thanks Thanks guys for so much good advice and so far! I can not believe I forgot to mention that I am in North Carolina Clock – Durham added, and the market value of my house, in fact, increased dramatically since I left the house purchased. Nearly 10%. at least I am told by my lender and community … Thank you guys for so much good advice and so far! I can not believe I forgot to mention that I am in North Carolina Clock – Durham added, and the market value of my house, in fact, increased dramatically since I left the house purchased. Nearly 10%. at least I am told by my lender and community …
Ok, here’s the situation .. will try as short as possible. My husband went to our mortgage company (Litton) thought (to be paid from a vehicle and a few other bills) a refinancing of a $ 10,000 loan to be seen. We have a lot of capital into our house, and it was a transformation. They referred him to Avelo refinancing. Basically, lower interest rate is only half a percent, our monthly payments are lower than our mortgage payment plus the car right now and everything should stay the same (to the extent that a fixed rate with no redemption penalty anticipated). There are closing costs, I’m not sure how much. The thing is they we want a $ 500 deposit for inspection and other fees to pay in the beginning. I’m not a good feeling about everything. What do you think it’s a smart move? If we try instead for a mortgage? We’re really trying to make our monthly payments down. He also said he should have in the lock, because the tax rate here is a better solution: two of you work part-time job 15 hours per week and the entire proceeds of this additional work moving in that direction $ 10.000.Wenn I get a job instead of being online, I would like to work completely pay for child care. Suffice it to say … I have a bad feeling about it anyway, thank you for the advice though. We do not technically have to do something, we are still able to pay our monthly payments. Tried just easier for my husband every month. Thank you!

7 Comments
  1. Reply
    Age of Reason
    January 22, 2011 at 9:33 pm

    Personally I would not refinance. You answered your own question. To save 140 a month you are losing 4100 + 6200 already paid toward principle. Suggest you just stay with current mortgage and add an extra 100 or 200 each month earmarked toward principle. This could knock 10 yrs off your mortgage. Doing in early in the loan has the most benefit

  2. Reply
    Arbor Mortgage
    January 22, 2011 at 10:30 pm

    One way to make this work out better for you would be to take $ 100 of that $ 140 savings and add it to your payment each month. So, you are paying $ 100 extra principal every month (still saving $ 40). On a $ 200,000 mortgage at 5.375%, paying just $ 100 extra each month will shave 5 years off your mortgage and save $ 41k over the life of the loan. You would be well ahead in interest savings, plus eliminate an extra 2 years from where you are now. Use this calculator to play around with extra principal payments and see where exact numbers lie.

    http://www.dinkytown.net/java/MortgagePayoff.html

  3. Reply
    Froufrou
    January 22, 2011 at 10:40 pm

    Arbor and Age gave good answers. I have also heard that one extra payment a year – just one – will knock off 7-10 years on a 30-year loan.

    Keep in mind what the FMV of the house is, not just what you have put into it. If the market is down and the house is worth less, by all means skip the refi.

  4. Reply
    KL
    January 22, 2011 at 11:37 pm

    The rate would have been a bit high if it was last week, but pricing got worse recently so the interest is about right. As for the closing costs, I can’t say if they’re reasonable w/o knowing what state you’re in.

    Your nerves seems to center around losing the 3 years you’ve paid in. Here’s the solution:

    1.) Have your loan officer amortize the payment as if the mortgage was based on a 27 year amortization. Anyone can do this if they have a financial calculator. The loan should not have a prepayment penalty so when you make the payment, pay it as if it’s a 27 yr. term. Even better, see what a 20 yr. loan payment would be (the rates on a 20 yr. are usually better than a 30 yr.) Though you may not reduce your monthly payment, if it stays similar to what you’re paying now you’ll save A TON more money this route. Lots and lots of interest savings 🙂

    2.) DO NOT wrap in any of the costs. Ask the loan officer to set the new loan amount to match the payoff and bring in the rest. If you can’t, have them look at slightly higher rates that will pay you back a credit towards closing costs (if they say they can’t they’re full of it.) Sometimes going with a higher rate with less in costs makes more sense if you have to wrap the costs into the loan amount.

    I hope this helps…I’m a loan officer by the way!

  5. Reply
    B
    January 23, 2011 at 12:33 am

    That sounds about right, i would talk to the mortgage company to see what would be best for your situation, weigh the pros and cons.

  6. Reply
    Expert Realtor
    January 23, 2011 at 12:39 am

    Since I am not working on commission, I am going to give you some HARD advice.

    Don’t take a bad situation and make it worse.

    Your house is not an ATM card. Refinancing to pay off your car and credit cards DOES NOT save you money…all it does is decrease the equity in your home and stretch your payments out to 30 years…so you’ll be paying QUADRUPLE what the debt was originally worth.

    Plus you’ll be paying about $ 3,000 in closing costs (at minimum) refinance $ 10,000 worth of debt ????? That’s crazy!!!!!

    You are refinancing the ENTIRE loan to work in $ 10,000. Do you realize that?

    Here is a better solution: Both of you work a part time job of 15 hours per week and have the ENTIRE proceeds of that extra job go towards that $ 10,000.

    Start with the debt that is costing you the most, pay that one off FIRST, then start with the NEXT highest one.

    You’ll be able to do it in less than 1 year, you won’t have to pay closing costs, you keep your equity.

    Win-win, all the way around.

    But please, DO NOT do this!!!!!!

    PS: With FHA you MUST pay PMI for a MINIMUM of 5 years REGARDLESS of how much equity your have!!!!

    Total waste of money when you already have a fixed rate loan!!!!

    PSS: Don’t get a home equity loan either…all you are doing is taking a car and credit cards (that you could technically bankrupt if you absolutely had to) and using your house as collateral, which means a lien instantly gets put on your house for the same debts. (b/c the HELOC is a SECOND MORTGAGE))

    Why would you want to do that?

  7. Reply
    D. S
    January 23, 2011 at 1:12 am

    A Home Equity Line of Credit will probably have a higher rate. I’d contact a mortgage broker to run both scenarios for you, which they should be glad to do. I don’t see any problem with them asking to prepay for an appraisal since they have to pay to have it done regardless of whether your proceed or decide not to refinance. Some lenders will do an automated appraisal for a refinance.

    There’s no need to lock today. Rates may be good today and they may go up but take your time and make sure you’re making a good decision.

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