KillJoy Posted January 13, 2012 Report Share Posted January 13, 2012 (edited) Say you have a home w/ a Mortgage in the $100k to $105K Range on a 30 Year fixed at 5.5%. We have 20 years left. You are wanting to sell the home, but will not be able to "get out w/o bringing $ to the table" for a year. Is it worth it to refinance at "today's" lower rates to lower the payment so that "extra" money can be added to Principle payments? KillJoy Edited January 13, 2012 by KillJoy Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted January 13, 2012 Report Share Posted January 13, 2012 run that through the bankrate mortgage calculator. probably save 1.5% on refi. so on a 100k house, thats roughly $1500. if you can get someone to refi it for less than that, then id go for it. likely the difference will be small, you might save a few hundred? idk what refi costs, so it could be up in the air. Quote Link to comment Share on other sites More sharing options...
RyM3rC Posted January 13, 2012 Report Share Posted January 13, 2012 you might save a few hundred? idk what refi costs, so it could be up in the air. I just looked into a refi and there was a 1% (of loan) rural fee. Made it not worth it for me to save a couple hundred bucks a month. Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted January 13, 2012 Report Share Posted January 13, 2012 I just looked into a refi and there was a 1% (of loan) rural fee. Made it not worth it for me to save a couple hundred bucks a month. risk premium for picking up the note on beatdick farmhouses Quote Link to comment Share on other sites More sharing options...
Got-Boost? Posted January 13, 2012 Report Share Posted January 13, 2012 You have to run all the numbers. If you don't plan to be there more than x time then normally it doesn't $ make sense. If you will be there for several years than it can pay off, you have to do the math and see what works for YOU and the situation! Quote Link to comment Share on other sites More sharing options...
Littleguy Posted January 13, 2012 Report Share Posted January 13, 2012 There are some banks out there that will let you do a Refinance of Purchase Money on their consumer side with no closing costs. If you find one at even .1 less than your current rate you'll end up ahead. Quote Link to comment Share on other sites More sharing options...
2highpsi Posted January 13, 2012 Report Share Posted January 13, 2012 Say you have a home w/ a Mortgage in the $100k to $105K Range on a 30 Year fixed at 5.5%. We have 20 years left. You are wanting to sell the home, but will not be able to "get out w/o bringing $ to the table" for a year. Is it worth it to refinance at "today's" lower rates to lower the payment so that "extra" money can be added to Principle payments? KillJoy Probably not The bolded words can only make me assume you owe what it is worth and don't have equity (maybe even under water) With a high LTV you will need PMI which has gotten more expensive from what I have seen. Also you will have a hard time finding a lender on a high LTV loan that won't charge things such as: appraisal 250-500 title 700-1500 and more. If you are talking the course of one year going from 5.5 to even 4.0 (on 125k)would only save $1400 in interest Now a 5/1 arm at under 80 loan to value would net a 3ish rate.... but sounds like you would need to bring a huge chunch of money to the table Quote Link to comment Share on other sites More sharing options...
Littleguy Posted January 14, 2012 Report Share Posted January 14, 2012 Very true, he would need at least 80%LTV to do the loan I was talking about. Quote Link to comment Share on other sites More sharing options...
GilbWs6 Posted January 14, 2012 Report Share Posted January 14, 2012 Check Union Savings Bank (not US Bank). I'm looking at refinancing to a 15 year at 3.25% rate. Fee is $250. Win, win, win, no lose. Quote Link to comment Share on other sites More sharing options...
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