I have equity in the house. I now have a 15 year amortization and I was thinking of going 20 to keep my payments down. What do you think?
2006-09-26 15:04:03 · 7 answers · asked by penquin 1 in Business & Finance ➔ Renting & Real Estate
my mortgage is 4.5%, my line of credit is variable at 6% and a new mortgage for an additional 30,000 would be 4.68% on the total of 115000.
2006-09-26 15:13:08 · update #1
So, I assume your line of creidt is Secured by your house.
I see you wanted to lower your payment by stretching back to 20 years. Is that some kind of situtation happened? There are lots of things you can do.
What I will suggest to do is the followings:
1) Keep a secure line of credit at ( combined income / 2 ) @ 6%
2) Rest in a fixed rate mortgage.
The reason of doing that is. I have developed a system that you can save thousands of interest by setting up like above. Please call me for details.
But in general, having such a setup with allow managable line of credit. Maximized the low rate mortgage rate of a fixed term.
2006-09-27 09:02:32 · answer #1 · answered by davidkwankwokfai 3 · 0⤊ 0⤋
Two BIG questions, how many years have you had the first loan and can you/do you want to make the 15yr higher payments.
If you noticed, every month you pay more in principal, if you refi, you start that game all over again.
Loan will cost you money to refi, by the sounds of it above 2% on of your first loan size.
So i doubt just combining the first and second will be justifiable.
Now if the are more factors to consider...
Is the payment too high? A late payment would be bad for your your credit.
Do you have other debt?
Would you like money to be else where then your home?
Odds are, just walk into you local bank and ak them for a home equity loan (that is a fixed rate), and you will do A LOT better.
Rates are about 8% for AA paper clients for seconds
cjkloanguy@yahoo.com
2006-09-26 23:59:00 · answer #2 · answered by cjkloanguy@yahoo.com 2 · 0⤊ 0⤋
you should defiantly can the variable rate. It will only go up. But you need to look at the bigger picture, including you current rate on your fixed rate mortgage, and what you could get on a fixed rate now. If you would end up paying a higher rate, you may want to just refinance the variable rate as a second mortgage.
2006-09-26 22:08:27 · answer #3 · answered by world traveler 3 · 0⤊ 0⤋
I'M A REALTOR AND YOU SHOULD SHOP AROUND NOW THAT YOU ARE THINKING TO DO SOMETHING AND BEFORE IS TOO LATE.
GET AT LEAST 4 DIFFERENT GOOD FAITH ESTIMATES AND GO FOR A FIX AND CONSOLIDATE BECAUSE HAVING TO PAY MORTGAGE AND CREDIT LINE IS 2 DIFFERENT THINGS, MAKE SURE YOU GO WITH THE BEST OF THE OFFER DEALS YOU GET.
YOU SEE MOST OF THE PEOPLE FALL FOR PRETTY WORDS AND NOT THE TRUE.
PLAY SAFE AND DO YOUR HOMEWORK AND WENT YOU READY GO FOR IT.
GOOD LUCK ON YOUR SEARCH....
YOU CAN E-MAIL ME BACK.....
2006-09-26 22:44:56 · answer #4 · answered by RPEREIRA 1 · 0⤊ 0⤋
Definitely get rid of the adjustable rate haven't you read the papers about the interest rate going up. What we have went through in the last several years we will probably never see again.
2006-09-26 22:38:17 · answer #5 · answered by WILLIAM W 2 · 0⤊ 0⤋
no. keep your motgage fixed pay it off asap and keep you line of credit open incase you need $$ for an emergency. If you are worried about payments, make sure you keep the balance low and you should be ok.
2006-09-27 01:45:22 · answer #6 · answered by mj 1 · 0⤊ 0⤋
yeah, borrow money on a long term debt...that's the ticket. next you'll tell us that you buy your food and beer on credit so you can amoritize the waste. why don't you work for free while your at it. and sell your unborn children to the mob.
2006-09-26 22:14:07 · answer #7 · answered by Michael S 4 · 0⤊ 0⤋