Should we refinance?

Avatar for raskin00
iVillage Member
Registered: 05-08-2003
Should we refinance?
4
Tue, 12-23-2008 - 11:44am

Here's our situation: We bought our house in April 2007. 80% is financed with Loan 1- 30 year fixed at 6.0%. 15% is financed with Loan 2

Photobucket

iVillage Member
Registered: 07-26-1997
Tue, 12-23-2008 - 11:51am
That depends on what kind of interest you can get.

 

iVillage Member
Registered: 10-23-2002
Tue, 12-23-2008 - 1:10pm
we just bought this house about a year ago... our mortgage person contacted me saying that because the rates have dropped so much and we've never been late *on this house or the 7 years we paid on our last house* she could refi us at a lower rate... no appraisial needed since it's the same company that just did our mortgage... the payment will be lowered about 150 a month for us...closing costs will be 634 plus 200 *that goes into escrow since we'd skip a monthly payment* so it's worth calling to see how much they'll charge you



chellelilysig.jpg





Alex 3'9 1/2"

Photobucket
Avatar for mom_x_three
iVillage Member
Registered: 03-27-2003
Wed, 12-24-2008 - 10:27am
it probably wouldn't hurt to have someone work it up and see what they can actually offer you, if the interest rate is low enough it may be worth it

Sherry


happily married since 2003...a blended family with 4 kids, 1 grandchild and second grandbaby due in September

Sherry<with 3 kids, 2 beautiful granddaughters

iVillage Member
Registered: 03-11-2008
Wed, 12-24-2008 - 5:27pm

You'll need to make sure that you don't end up having to pay PMI. In order to avoid that, your house needs to appraise for at least 20% more than the amount you owe in order to stay within the 80/20 ratio. If you can keep within that guideline and get a better interest rate, it may be worth it. One more thing to consider is closing costs. Even on a loan that has no fees up front, there may be any number of things that they can roll into the loan. Again, your main goal is to stay within that 80/20 ratio and lower your payments.


Good luck!


Laura

Image hosted by Photobucket.com

Laura