Refinance a loan of 30 years?

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Right now I am a 20 year mortgage with a balloon payment at the end. If I refinance a mortgage 30 years will my monthly payments?

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8 Comments
  1. Reply
    SUSIE
    May 18, 2011 at 11:35 am

    yes. but remember in you have to pay closing costs to refi

  2. Reply
    Casey G
    May 18, 2011 at 11:43 am

    Depends on what your interest rate was when you got your 20 year mortgage. It also depends on what your balloon payment is and what you are currently paying for your Debt Service (your mortgage amount monthly). If you post your interest rate and current payment, I will figure it for you so that you can better see what your options are. However, unless you got your 20 year fixed with a high interest rate, I would wait until it is nearing the time of the balloon to refinance. It looks like your loan officer has tried to help you. I have some properties with balloon payments at the end of the note and they are all close to interest-only payments. This is because I believe the value of the property is rising faster than the interest rate.

  3. Reply
    camaro46368
    May 18, 2011 at 12:42 pm

    Yes your payment will go down, but check into this. Try a 15 year mortgage, you may pay a hundred or so more a month but you’ll cut 15 years off of a 30 year mortgage.
    Here’s a morgage calculator
    http://client.aavirtualoffice.com/calculators/mortage.asp

  4. Reply
    sophieb
    May 18, 2011 at 12:54 pm

    my suggestion to you would be to go for the 30 year loan without the balloon. Ballons are creative financing and a lot of people lose their homes because they cannot pay that balloon. So no matter whether your payment goes up or down, the 30 year is still the better deal. If you have to make some money then rent out a room. Good luck to you.

  5. Reply
    Jay
    May 18, 2011 at 1:25 pm

    yes, your monthly payment will go down, question is will your interest rate stay the same or become lower or higher? that’s if your refinancing through someone else. is this your first home and plan on staying there forever? if not is it really worth the refinance? if you don’t plan on staying in that home you would be better off renting because your going to loose money either way. i would sit down and think of these questions before making any decisions, is your current payment really putting you in the hole? ( don’t answer that) but if you can make ends meet for what you have right now, sit down and plan a budget, see what you can cut back on (spending wise) and if you have a lot of plastic, get rid of what you don’t need!!! it’s a lot easier to consolidate little bills for a low monthly payment, that will be paid off in about 5 yrs instead of throwing 10 more years of a house payment on something that could be paid off in a fairly decent time..hope this helps you out..

  6. Reply
    Goldenbearloan.com
    May 18, 2011 at 1:57 pm

    Just my two points-

    Yes 30 year fix will make lower payment.

    Try a 30 year fix 10 year interest only. Great fannie mae product.
    First 10 years two options of interest only or 30 year fix. 11th year goes into 30 year fix without any rate change.

    Good luck!

  7. Reply
    frymail2005
    May 18, 2011 at 2:10 pm

    Of course it will go down..

    think about it, your current plan takes what you owe, divides it by 20 years, and also factors in interest…

    If you take that to a 30 year loan, that’s 10 more years to spread your payment out.. So, yes you wil lsee a much lower payment, but you will pay more interest…

    Are you looking to lower your payments? Is there a particular reason?

    the reason i ask is because there may be other specialized programs that fit your needs..

    What i would suggest is that you speak with a professional so that you know what all of your options are.. A qualified banker will be able to take into account your needs and wants, and put together a program that makes sendse for you..

    I would be happy to assist you in a refinance. My name is Jason Fry, i work with Providential Bancorp, a nationwide mortgage lender. Feel free to call me at 312-264-6448, or email me at jasonf@providential.com..

    Good Luck!

    Jason Fry
    Licensed mortgage advisor
    Providential Bancorp

  8. Reply
    robert495713
    May 18, 2011 at 2:56 pm

    yes the payments will probably go down, but if you got the mortgage just a couple years ago, the rates were likely 1-2% lower than you would qualify for now. Therefore, the payment won’t go down as much as you think – you’re taking an extra 10 years to pay if off but the interest rate has gone up to compensate for this.

    You should analyze both ways to see which way is best.

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