I have a monthly mortgage of $1,350.00 with a 4.92% interest rate which is due to go up. How much might the monthly payment go up if the rate increases to 6.25%? That is on $197,000 with monthly taxes of $330.00 escrowed? That is the only thing escrowed (hazard insurance is paid by myself quarterly). Thanks !!!
2007-08-26 09:01:12 · 5 answers · asked by Gretta 3 in Business & Finance ➔ Credit
Hi Gretta
What type of loan program are you on? I gather its an ARM product. ARe you paying towards principal along with your interest and taxes? What is the term of your loan?
2007-08-26 09:47:45 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The amount escrowed doesn't affect the increase in payments. The increase in payment going from 4.92% interest to 6.25% interest (on $197,000) will be ~$160/month.
A 6.25% interest rate is still good. Will it go up again? Do you have to worry about the direction of your payments every year? It might be good to finance into a fixed rate loan, but you'd pay about 6.25% with excellent credit.
Good luck!
2007-08-26 16:34:25 · answer #2 · answered by Rush is a band 7 · 0⤊ 0⤋
You should probably consider refinancing that loan to a fixed rate. I suggest you talk with several local lenders. Don't use Internet loan companies, if something goes wrong you won't be able to get ahold of anyone. Local ones you can walk into their office and face them. We are anticipating a decrease by the Fed's in the next couple of weeks, so I wouldn't wait to get the ball rolling.
You may want to call 888-995-HELP before you get into financial difficulties.
2007-08-26 16:14:52 · answer #3 · answered by Alterfemego 7 · 0⤊ 0⤋
I put a website below. Call your lender and get your unpaid principal balance and plug it along with the remaining term & rate to calculate what your new p & I will be. Then add your escrows. This should be your new payment.
2007-08-26 16:14:08 · answer #4 · answered by Etta P 4 · 0⤊ 0⤋
visit http://realestate.yahoo.com/calculators
they, along with many other websites have a mortgage calculator. you can plug in those figures and get an estimate of what your new payments will look like.
Good luck, you may want to consider refinancing for a fixed rate mortgage. 6.25% is a very good rate, however if it will increase again, you may want opt for a fixed rate.
2007-08-26 16:12:39 · answer #5 · answered by Lil Mama 3 · 0⤊ 0⤋