i'm nearing the end of myprepayment peanalty,i'm thinking of refi the house to a fix mortgage and take some money out.also pay some student loans.how does this add up.i have a 150k equity sitting on my house since we bought it 2 years ago.does my payment go up or about the same.need your professional opinion on this one.i had avoided refinancing my house due to the prepayment around 15k.
2007-01-29 13:52:14 · 5 answers · asked by john r 3 in Business & Finance ➔ Renting & Real Estate
A refinance pays off the existing liens on the property at the new rate and loan amount. There are many reasons people refi but the most common would be paying off an existing loan which is about to become or is already adjustable, consolidating other debts into one payment, home improvement or just lowering the existing monthly payment.
In some cases the new payment will be larger than your current payment. If you take out a lare amount of cash then there is a possibility that your payment will be higher. However if your taking out cash to pay debts then you need to determinewhat your paying per month now between your home and debts and what your new payment will be with everything consolidated. If the new loan is lower then you have a cash flow increase and that would usually be a good thing.
Your interest rate will be determined by the loan to value, your credit score, loan amount, type of loan (interest only, 5 year fixed, 30 year fixed etc...), cash out or no cash out etc...
Rates are still GREAT. Everyone who says rates are so-so right now obviously do not realize that a 30 year fixed back in 2000 averaged 8-8.5%. The fact that they are in the low 6% range to me is truely amazing.
If you would like to discuss your specific scenario drop me a line.
Good Luck
Kevin 866-562-6838 x 106
kruorock@firstratelending.com
2007-01-29 16:59:38 · answer #1 · answered by Mudisfun 3 · 0⤊ 0⤋
The question: If you pay off your other debts and do the repairs, how much are you going to save monthly. Your interest rate will be base on your credit score, number of late mortgage payments and the LTV.
How long do you plan to be in the home? 2,5,10 years? If more than 5 go fixed if less then 5 am arm rate MAY be better.......
YOU TELL ME>>>>
2007-01-29 22:36:49 · answer #2 · answered by ron d 3 · 0⤊ 0⤋
Depends on a few things: your credit score, income and assets, as well as your goal for the refi. Rates are ok (not great though), consider a 5-year ARM to get your bills down.
2007-01-29 21:56:44 · answer #3 · answered by Chris 4 · 0⤊ 0⤋
It will make your payments smaller if you make the repayment period longer or lower the rate. It should only be marginally higher if you tap some equity to consolidate bills if you choose the right broker. To have the professionals contact you, fill out the free form at
www.totaldebtsolutionsllc.com
2007-01-30 19:24:14 · answer #4 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
Do a refi if you're looking to do one thing, and one thing only-
1. lower your rate/ monthy payments
2007-01-29 23:23:29 · answer #5 · answered by djdraven99 2 · 0⤊ 1⤋