Should I refinance my home?

[pandus13]

Originally Posted By: jay929
...
I'm always getting refinance stuff in the mail especially harp


Word of warning: all those are mailed by private entities selling their services.
Do not fall for words official sounding like sent from: state/government/county mortgage center....

 

[jay929]

I currently pay $200 extra each month into the principal. Still a couple foreclosures in my subdivision so prices are slow to go up I'm nowhere near selling it for 100,000. I'm currently renting this property out just not sure for how much longer

 

[Wolf359]

Originally Posted By: jay929
Ugh, Maybe just stick to making extra payments and pay it off early like a plan I guess. That 6% number is hard to swallow though


I'd say it's worth it, but the problem is that with a 55k loan balance, the fees will probably kill you and not make it worth while unless you can find the same type of loan with no closing costs and the interest rate is lower. You could refi into a 15, that'd knock a couple years off your loan. Most lenders typically have a 100k minimum, under that, fees are a killer. A credit union might be able to do something. Investment property makes it tricky though.

 

[supton]

Originally Posted By: BrocLuno
You are many yaers into your current financing. You have passed the point where all your payment but $1 was interest. You are now paying a balance of interest and principal. So, in reality, you are not really eating the 6%. You already ate it. No going back. A new loan will put you right back into mostly interest, and little principal.


Not quite. He is always paying 6% on what is left on the loan.

You're correct, early in a loan, interest payments can exceed principle payment. But truth is, the interest is always being charged on what is left (on a conventional loan, unless if interest is deferred somehow).

 

[supton]

Originally Posted By: wallyuwl
My question is... how is a house you bought 12 years ago for $105k now only worth $70k? The market has fully recovered from the crash and then some.


That is location specific. My house is back to what it was valued at in 2005, going off town evaluation & Zillow (however dubious those are). It's also condition specific: mine is worth about half of that valuation due to structural issues--in this area, people only buy turnkey homes, thus it's worthless. If it was beachfront in CA, that might not matter one whit (as the buyer might be wanting to build new anyhow). But that's another location specific thing.

 

[nwjones18]

I refinanced my house from a 30yr FHA loan to a 15yr conventional at 2.75% through provident funding. Process was easy and fees were minimal (under $2k). Since I was losing PMI at the same time my payment stayed the same and I shaved 12yrs off the mortgage.

 

[Linctex]

Originally Posted By: alarmguy

I would suggest if you have a nearby credit union to also talk to them.


My local credit union beats the "Big Banks" on everything, all the time

They gave me 4.5% APR on a used pickup loan. A "bank" would never do that.

 

[Wolf359]

Originally Posted By: Linctex
Originally Posted By: alarmguy

I would suggest if you have a nearby credit union to also talk to them.


My local credit union beats the "Big Banks" on everything, all the time

They gave me 4.5% APR on a used pickup loan. A "bank" would never do that.


How old was the pickup and what was the term? Penfed does used car loans at 3-4.25% depending on the amount and term.