We have 2 mortgages, ARM and a 30 yr fixed. It's been 3 years since we started, but we barely scratch the principal ($50,000) for the ARM. Is 15 yr fixed a better solution to refinance our ARM? Or should we just pay extra towards principal monthly? How much extra dollars do we need monthly to pay it off in 5 years? We are paying $502.45 monthly now, and that's just for interest. Thank you.
2007-09-14 08:12:29 · 8 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
In order to answer this question you must give more details, that being said , use this formula for % calculations. Example: $150,000.00 X 6.5% = 9750 Divide this figure by 365 (days) = 26.71 X 30 days = $801.37. Formula, mortgage pmt X interest rate divided by 365 (days in a year), multiply X 30 days (month), and this is the monthly interest on the loan amount mentioned above, on a 30 yr. amortorization. Is your goal to live in the home for over the next 5 years? Every individual is different, so to advise you , a professional would need to know all the variables to help you. Are you more concerned about the pmt., or building equity? Hopes this helps, Good Luck!
2007-09-14 09:03:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
First of all, wait until next week to find out what the new interest rates are going to be. You want to refi but I would wait for the rates to go down...and they will. Don't rush. Be patient....then I would do a 15 yr fixed and set up to pay bi-monthly. If you can, add extra money to your bi monthly payment....any about will help. This will cut your payments down to about 7 years. The extra added to your payment should put you at about 5 years.
2007-09-14 08:20:54 · answer #2 · answered by mrsdeli 6 · 0⤊ 0⤋
Think of it this way, the less term you get the faster the loan gets paid the lower your rate and the higher your payment will be. 10, 15, 20, 30yr Fixed loans are all good loans. Anything outside of these for example ARMS, MTA's, Ballons will get you farther away from ever really paying off your loan. If you are really interested in financing and changing them both into a lower term alow me to run some numbers for you and if you like let us finance you and if not shop around for a better deal. We are a direct lender no middle man involved.
Email hrocco@hayhurstmortgage.com if you would like some assistance. Thanks and good luck.
2007-09-14 09:21:10 · answer #3 · answered by Henry R 2 · 0⤊ 0⤋
The interest area of your loan fee each and each month is for interest you owe for making use of the financial enterprise's income the process the previous month. the before you pay down the crucial stability the less you will owe in interest each and each month. general, paying down crucial will decrease your finished interest cost regardless of how you do it. On a fastened fee loan paying down crucial will shorten the term (Rule: pay one greater month's crucial ingredient each and each month and the loan will repay in 0.5 the time. person-friendly interior the early years, tougher interior the later years through fact the crucial ingredient gets larger). On a variable fee loan, paying down the crucial won't impression the loan term yet, each and every time you come back to an adjustment date, the hot fee would be based on your ultimate crucial stability. Pay down various crucial and you will see a huge drop on your fee. Taxes is an entire 'nother matter. you are able to choose the interest deduction so as to get you above the conventional deduction so as so which you are able to use different deductible products. regardless of if the tax reductions is truly than the interest reductions is a activity for an accountant who has your total difficulty to envision. Or a magician.
2016-11-10 10:58:34 · answer #4 · answered by ? 4 · 0⤊ 0⤋
I would suggest refinancing that ARM to a fixed rate. I am not hearing that interest rates are going down anytime soon. You should not be paying more than 6% interest these days.
2007-09-14 08:22:24 · answer #5 · answered by ga.peach67 4 · 0⤊ 0⤋
Refi it all into one 50yr fixed, then over pay every month and instruct the lender to apply it directly to your principal.
2007-09-14 09:28:40 · answer #6 · answered by saberhilt 4 · 0⤊ 0⤋
Here's a mortgage calculator that you can plug in the information that is for just you and get your answers
http://www.bankrate.com/brm/popcalc2.asp?unroundedPayment=500.22633184423375&loanAmount=5400.00&nrOfYears=1.00&nrOfMonths=12&interestRate=20.00&startMonth=8&startDay=9&startYear=2007&Submit.x=37&Submit.y=5&Submit=Calculate&monthlyPayment=500.23&monthlyAdditional=0&yearlyAdditional=0&yearlyAdditionalMonth=8&oneAdditional=0&oneAdditionalMonth=8&oneAdditionalYear=2007&paidOffDate=Sep+9%2C+2008
2007-09-15 06:10:45 · answer #7 · answered by Pengy 7 · 0⤊ 0⤋
okgive me the amount and term of the first and the amount and term of the second and i can best help you
first of al it looks like your paying 10% interest only wow thats high
2007-09-14 08:15:52 · answer #8 · answered by Anonymous · 0⤊ 0⤋