I was just curious was this a bad move. A year has passed since. When we purchased this house I was making very little money (less then 30K a year). Now I'm making 45K. Our monthly payment is around 857 a month.... I was just curious does anyone know any info regarding refinancing. Is it worth it. I was told my interest rate is not that bad. I was also told refin is not worth it if you are going to be there less then 5 yrs...
2006-09-07 02:26:54 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It depends on how long you're planning on staying in the house, and how long before the balloon payment is due.
Keep in mind that rates are going up, and unless you have great credit you could get stuck with a terrible rate if you refinance into a loan that isn't hybrid.
2006-09-07 06:52:03 · answer #1 · answered by Laquishacashaunette 4 · 0⤊ 0⤋
Refinancing can cost a lot, the interest ur paying is pretty good (were are u?) If you have suddenly got an income increase I suggest that u put all the extra money into ur mortgage, just pretend u didnt get a pay rise, that way if interest rates rise, uve got some leg room for the extra payment. You cant go far wrong with equity in real estate.
P.S if ur in Aus id love to know who gave u that interest rate, its very good
2006-09-07 02:31:23 · answer #2 · answered by livachic2005 4 · 0⤊ 0⤋
What's are home values doing in your area? How is your credit? Perhaps with the raise you can do full documentation instead of stated income? How long do you think you'll stay? Do you have a prepayment penalty
If you're A paper you can get a rate that's probably enough lower to make it worth your while at a reasonable cost that you can justify in maybe 2-3 years if you don't have a penalty. Otherwise, no.
2006-09-07 07:31:32 · answer #3 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
In this housing market, I think you may have difficulty. Interest only loans are only good if the property value rises fast enough to sell for a profit before the balloon payment is due. If not or if the property value decreases, you are in trouble. You will be forced to refinance at that time and all of the interest you paid will be gone and nothing to show for it. I personally think interest only loans are a bad idea. The only people getting rich off of them are the banks.
2006-09-07 02:31:23 · answer #4 · answered by troythom 4 · 0⤊ 0⤋
your interest rate now is good, so i will recommend to you to pay extra money with your mortgage payment and this way you will pay your principal down. when the rate will drop and you will know that you will stay in this house for a while- then i will refinance.
if you will pay every month $1000 and keep this loan for 30 years , you will pay your mortgage in 23 years.
i don't know if you have mortgage insurance PMI, if you have- try to removed without refinancing. if the houses in your area are selling 15% more, than you pay- you can ask your lender to removed your mortgage insurance without refinancing.
2006-09-07 07:49:44 · answer #5 · answered by bianca 4 · 0⤊ 0⤋
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2016-10-14 10:13:19 · answer #6 · answered by ? 4 · 0⤊ 0⤋
If it's not a fixed rate it would be a good idea to see what the bank can do for you.
2006-09-07 02:34:56 · answer #7 · answered by normy in garden city 6 · 0⤊ 0⤋
hometraders.com
2006-09-07 02:39:30 · answer #8 · answered by gsg_33 2 · 0⤊ 0⤋