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refi advice.

Is it better to refi to 30yr or 15yr. My current mortage is 5% fha for 281k. my payment is 2114 $ .Loan orgination date 2008 feb

i used a loan mortgage person i have used before.who i found here . he came back stating that 2 apprisal company he uses estimate that after the addition my house is worth 311 and 321. We are redoing the kitchen  , so i am waiting for that to complete as per him will give me a better chance for a cheaper loan.


In that case , is there any benefit goto 15yrs if i can afford it. If i do a another 30yr i am sure my loan will be a couple hundred less. But i wonder if i can a 15yr and pay say 2200 or so and be better or the numbers are way off.
  • February 09 2013 - North Attleborough
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Answers (5)

Best Answer

Hi Msats,
If you can get a  healthy reduction in rate between your 30 year or 15 year refinance then consider the 15 year. However is the rate difference isn't significant says half of a point then the new 30 year payment will most likely provide you a new level of comfort.  Consider refinancing out of the FHA loan to a conventional loan so you can get a reduced Mortgage Insurance premium. Even if you have to pay for an appraisal. If you do an FHA streamline  you will have to pay 1.75 funding fee on your loan amount and after April 1st, 1.35 percent annually.

Thomas Gessner
Academy Mortgage
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  • February 09 2013
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I personally like longer terms because of the flexibility of the lower payment. If you just add an additional $100.00 principle payment each month when you send in your payment it will reduce the length of your mortgage significantly over 10 years. I also like using local lenders, where are you located?
  • February 10 2013
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Profile picture for msats
I did some zillow estimate that is putting saving around 90k over the life of the loan. My wife came into some inheritance and paid off all our debt/car payment and put 30k into the house.We have added a bedroom and office[400 sqft]. legalized the 2nd bath room.I am also spending 15k on a new kitchen .Our 401k savings and kids college  fund have a good plan.

I feel it will be mortage plus my car payment to new the 15yr mortage payment . to be mortgage free at 50 is a game changer.


satz
  • February 10 2013
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"pssst"...Thomas

He bought in feb 2008 so he should be good with a streamline 30 year and not pay the 1.75% or higher monthly PMI.  Not sure if the 5% savings will be there on the 15 year though. 

  • February 10 2013
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If you go to 30 year you won't need an appraisal.  If you go to a 15 year you will need one.  If you can handle the payment on a 15 year, I would.  10's of thousands in interested saved and 10 years of payments. 
  • February 09 2013
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