Well heres the deal. Im looking at a 195K house. I want to do a 80/10/10 loan. 80% on 30 yr fixed, 10% on 10 year, and 10% cash down which will leave me w/ 175K mortgage. Now the tricky part. Around October 07 I will be getting 60K cash that I want to put towards the mortgage. So doing it this was I will pay off the 10% loan and apply rest towards the 30 yr which would leave me with $115K. Now can I refinance that? If so how long do I have to wait to refinance?1 year? 6 Months? Thanks
2007-03-26 16:58:21 · 5 answers · asked by billyg33176 1 in Business & Finance ➔ Renting & Real Estate
Well I suggest you shop your mortgage rate to meet your goals. Most important thing is that you KNOW that no matter what , you have the ability to place a one time lump sum payment and a free one time re-amortization. What this means is your current 1st mortgage rate and term remain at the same interest rate and term but that lump sum goes to principle and the payment will lower dramatically. Most mortgage loan officers don't even know of this but it is accurate info I have done this for a few clients in the past. Hope this helps
2007-03-26 18:03:00 · answer #1 · answered by amstarlender 2 · 0⤊ 0⤋
If you have a loan with no pre-payment penalty, then you can do it at any time.
My suggestion would be to go to your Mortgage Broker, after you've paid off the 2nd. Tell them that you want to refi and are looking for $115K mortgage. Do not pay the money toward the principal of your 1st until the new refi mortgage is applied for. This will keep the money in your interest-bearing account as long as possible, working for you. Explain what you are trying to accomplish and the Broker will tell you when to pay the 1st down.
2007-03-26 17:10:16 · answer #2 · answered by Insurance Biz CT 5 · 0⤊ 0⤋
It depends on your contract, most have a 2 yr prepayment penalty. So you can't pay it off for 2 yrs. But putting the money down on the morgage is a great idea. Especially the stuff going on with morgages these days.
2007-03-26 17:05:33 · answer #3 · answered by Anonymous · 0⤊ 1⤋
If there's no early payoff stipulations in your loan, you can refinance immediately. Be sure to stipulate that the lump sum payment goes against principal.
2007-03-26 17:04:03 · answer #4 · answered by Mark G 4 · 0⤊ 0⤋
How about living in your parent's home. it is free...
2007-03-26 17:01:08 · answer #5 · answered by roy_marzoed 4 · 0⤊ 1⤋