Help me with refinancing our house

**safari** · 01-28-2008, 11:31 AM

You should only be concerned with the interest rate, the term doesn't matter, whether it's 10, 15 or 30 years. You can always pay more than the minimum payment to pay off your mortgage faster. Just get the lowest possible rate without any points. You said you won't be paying any closing costs, but just make sure that they won't be rolling the closing costs into your mortgage.

**Thrif-t** · 01-28-2008, 11:44 AM

ok safari thanks I just wasn't sure on all this. I think the fed either lowered rates again or will be shortly so this is just something I'm researching to see if it would benefit us. Thanks for taking time to post.

**jIM_Ohio** · 01-28-2008, 02:29 PM

Originally posted by safari View Post

You should only be concerned with the interest rate, the term doesn't matter, whether it's 10, 15 or 30 years. You can always pay more than the minimum payment to pay off your mortgage faster. Just get the lowest possible rate without any points. You said you won't be paying any closing costs, but just make sure that they won't be rolling the closing costs into your mortgage.

disagree. You need to analyze the term, because if you lengthen the term, you pay more interest. Even if you pay extra, there is the closing costs to consider.

If the OP is serious that closing costs are zero, maybe the loan could be refinanced.

OP saves 9% on payment (so gets one extra payment per year). $75/month does not appear to be enough to me to refinance, though.

If the $75 is going to be cash, don't see the need to refinance. If applied to pay off mortgage faster (my quess is the $75 shortens term by maybe 6 months from where they are now), then I think the refinance makes sense.

**safari** · 01-28-2008, 02:51 PM

Originally posted by jIM_Ohio View Post

disagree. You need to analyze the term, because if you lengthen the term, you pay more interest. Even if you pay extra, there is the closing costs to consider.

If the OP was going to only make minimum payments, then the term would matter, as he would be paying more interest. However, if he decides that he wants to pay off the mortgage in let's say 7 years, then it doesn't matter whether he refinances it for 10 years or 15 years or 30 years. He would just need to calculate how much he needs to pay every month to pay off the remaining balance in 7 years. That's why I said that the only thing that matters is the rate.

**maat55** · 01-28-2008, 03:12 PM

You need to amitorize the same payment with the new interest rate and see how many payments will need to be made to payoff.

**Daylily** · 01-28-2008, 05:25 PM

Thrif-t, have you actually found a bank willing to do this? I'm in a similar position and the last time I inquired about refinancing I couldn't find anyone to do it because my balance was less than 100k.

**Thrif-t** · 01-29-2008, 05:39 AM

Originally posted by Daylily View Post

Thrif-t, have you actually found a bank willing to do this? I'm in a similar position and the last time I inquired about refinancing I couldn't find anyone to do it because my balance was less than 100k.

I'm in NE Ohio and my bank and morgage are thru Charter One. That is what the loan officer said, but I will double check again. I'm not interested in lengthening out the loan want to get it paid off faster. That's why I wasn't sure about taking a 10 yr term when I"m at 9. But getting the lower interest and figuring out the payments for lesser years makes sense. We would definetely pay more then the minimum on a 10 yr. I just thought with our current 6.8% I could get that rate down. The loan officer referred me to the bank to see what they could do. The girl at the bank told me to call back friday since rates are expected to go down again. There was a 5 year loan I could get but it upped my payments to 1255/mo, that's a little high for us. I don't mind paying more if I have the extra but don't want to have to pay that high payment in case I couldn't.

**Daylily** · 01-29-2008, 06:11 AM

Thanks for the response. I'm at 9 years, 5 months remaining at 5.625%. I've seen rates recently for 4.625% for a 10-year term. I may have to inquire again but I thought the last time I looked at this, my bank wouldn't do it unless I also took cash out to bring the refi up to 100k.

**LivingAlmostLarge** · 01-29-2008, 07:40 AM

If you are determined enough, why not get a 5/1 ARM and make it a point to pay it in 5 years?

**loulou** · 01-29-2008, 06:58 PM

Have you used any online calculators to see how much money you would save? If you won't be paying any closing costs, I think it would be a great idea. Refinancing would definitely help you pay off your house faster.

**humandraydel** · 01-30-2008, 03:18 AM

Make SURE you get a loan with NO prepayment penalties!

**Thrif-t** · 01-30-2008, 08:09 AM

Originally posted by LivingAlmostLarge View Post

If you are determined enough, why not get a 5/1 ARM and make it a point to pay it in 5 years?

Well that just scares me you know all those what if's...I'd rather have a payment I can afford and pay more when and if I can than get locked into a high payment. And plus I just don't want to take a chance on anything thats not fixed.

**LivingAlmostLarge** · 01-30-2008, 09:46 AM

LOL, I know a ton of people who did it. And they made their 5 year goal! It depends on what other debts you have etc.

**sweeps** · 01-30-2008, 09:51 AM

Get the 5-year ARM. The government will bail you out if rates go up.

Help me with refinancing our house