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Answers (16)
- David Widlund
- Contributions:204
It might, but shop around a little. That rate is higher than market rates right now. You should be able to do better, and perhaps shorten your term while you're at it.
Good Luck!
Good Luck!
- Kelly Lacey, "kellylacey"
- Contributions:797
Jonathan-In regards to your question about the 8 years you've had your current mortgage, you basically start all over again...take Clay's advice and look into a 20 yr. Payment may not go down by a ton but the interest savings should make it worth it. I included a link to an amortization table so you can look at the total interest savings:
Amortization Calculator
Amortization Calculator
- Virginia Callaway, "ladyva05"
- Contributions:92
yes :) Because over the lifetime of the loan you will save alot of money because more of your payment will go to the principle and not the interest side.
- Justin Kennedy
- Contributions:692
All these great ideas and the main problem you have is will your 2nd position loan allow a subordination with a high combine loan to value/neg equity position. many will not.
- Clay Branch, "Georgia Loans"
- Contributions:7836
Jonathan, you can benefit from refinancing but it will take a long time to realize the total savings. If you restructure the loan on a 20 year loan and keep the loan for the whole term, you will eliminate about 2 years of payments plus save about $15/month. You should be seeing about a $105/month difference in your current principal and interest payment compared to a new 30 yr principal and interest payment. If it is only $75 lower, then your current rate must be 6.25%.
- Jonathan22
- Contributions:3
It seems as if I am starting a new 30 yr loan! Loan term 360 months from the GFE, what happens to the 8 years I have already paid?
- Michael Brazier, "W. Town Savings Bank"
- Contributions:55
Paperwork for this loan is minimal. Your doing a VA Streamline.
Copy of Drivers License
Copy of Social Security Card
Copy of your existing note(easy to get)
Copy of Settlement Statement
Name and Number of Home owners insurance provider
No Appraisal is necessary
Takes about 10 days to complete and you get two months off of payments
2nd loan subordinates your refi of the first.
Let me know if this helps.
Copy of Drivers License
Copy of Social Security Card
Copy of your existing note(easy to get)
Copy of Settlement Statement
Name and Number of Home owners insurance provider
No Appraisal is necessary
Takes about 10 days to complete and you get two months off of payments
2nd loan subordinates your refi of the first.
Let me know if this helps.
- HomeSand.net, "White Picture"
- Contributions:4393
- HomeSand.net, "White Picture"
- Contributions:4393
- Jonathan22
- Contributions:3
VA fixed 30 yr loan of $81,000 payed down to $72,000 at 6.75%! Very good credit 740. I have a second mortgage that puts me upside down, so he is only going to help the primary. I have had this loan since 2002 and am not moving. It seems to me that it is adding $2000 to $72,000 - new loan $74,000, savings of $75 a month! Is that worth the headache and unknowns of the new loan?
- Clay Branch, "Georgia Loans"
- Contributions:7836
What is your current balance and is your credit good?
- Steve O'Day, "Northstar Mortgage"
- Contributions:4
It depends on:
1. How much you're refinancing
2. How long you plan to stay in the house
3. If you are going from a variable rate to a fixed rate
Unless you have a really small loan or a Jumbo that rate does seem high so shop it around. That's what this site is all about.
- Jay Patel, "0pointloan.com"
- Contributions:9
The loan amount is a very important factor. Also, the rate of 5.5% sounds a bit high in this market. Check around for better quotes. Good luck
- Justin Kennedy
- Contributions:692
1. take your total closing cost and divide by the payment saving =recapture
2. if the new loans term adds additional years of interest. how many?
3. if you need the lower payment to survive this economic enviroment.
2. if the new loans term adds additional years of interest. how many?
3. if you need the lower payment to survive this economic enviroment.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3423
The loan amount would help. If the total loan is 20,000, definitely not. If the total loan is 2,000,000, then yes, great loan. If somewhere in the middle, let us know and we can help determine your break even.
Does it make sense to refi a 6.75% mortgage to a 5.5% for a $2200 rolled in fee.
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