lower payments?

Question

I have a prepayment penalty on my mortgage but it might be worth it to refinance my home before the 2 year requirement is up. Is that something that I can do? I already have about 30K+ of equity in my home and i know that my prepayment penalty is about 4K if I were to sell it right now
Also what is involved with refinancing your home? Do you have to go through the same credit check/employment crap like the first time?
ok here are my details...
both my husband and I have different jobs. His job is commision based and i work A LOT less hours than I used to.

We have 2 mortgages because we are young and that was the way we could get into a house
first payment is 820 at 7.7% interest
second payment is 323 at 11% interest.
I am just looking to refinance and not take any money out. just to lower our payments. to pay off both loans it would be 160k, and that would include the prepayment penalty.

we both have really good credit but I am thinking the job thing might be a problem??

Answer 1

From what you tell us the new loan amount would be $160K and on top of that you already have $30K of built-up equity. Therefore your property value according to your satements is about $190K

The $160K only covers 84% of the value of your home. Therefore I think it might not be such a bad idea to refinance and obtain the lower rate & payments you could obtain now.

Of course I cannot tell you for sure (as nobody else here can) if you will for sure be able to get a better rate because there are many factors that need to be looked at before you refinance.

You should know that your prepayment penalty amount is normally 6 months worth of interest payments. Make sure you did your math correct.

The job should not be a major issue.

You could read serveral informative articles about Mortgages at www.JRealEstate.blogspot.com under the link "Mortgage/Credit Education"

Hope that helps, good luck

Answer 2

First part yes you have to go through the application process, Income, credit etc and have your home appraised. Now lets look at the numbers 160,00 @ 7% for 30 years would cost you 1064 per month a savings to you of $79 per month you would recoup the 4k in 52 months.This does not include the costs of the appraisal and loan. With interest rates as volatile as they are would not go for a variable. If the interest rate is at 7.7% (what the one loan you have is at, you will only save $3 a month.

Answer 3

Most organizations won't receive any fee preparations if you're present. It relatively sounds dangerous, however you have got to get in the back of earlier than they'll attempt to paintings with you. But there may be not anything flawed with you attempting, the worst they'll say is No. If you do determine option repayments, then anticipate them to near the account. An option is to visit a Non Profit Debt Managment Program. They have preparations with the bank card organizations to decrease intrest charges and feature decrease repayments. However, inspite of those they nonetheless most effective cross so low. As with making an association with the bank card organization, getting on the sort of systems will generally even have your bills closed. But to your case that is generally a well factor till you'll be able to get again on monitor. If you simply quit paying, your stability will keep to develop with the past due charges and curiosity. They will ultimately take you to court docket. But that is the final choice and it could be a couple of years earlier than this could occur. They would possibly not take any property however they'll try to both garnish your wages or connect your financial institution account.

Answer 4

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