Recent Topics
Looking at a cheap commuter!
by ryan2022. 09/21/18 09:46 AM
Does Your 3.5EB Make Oil
by Gene K. 09/21/18 09:07 AM
F150 Front Differential
by hatt. 09/21/18 08:45 AM
EU version of Subaru 2.5 FB engine
by IMPALA08. 09/21/18 08:40 AM
New “rules” changing your choice of car?
by daves87rs. 09/21/18 06:04 AM
WIX51334XP Oil Filters
by CB900F2. 09/21/18 05:14 AM
Signal Oil Company radio advertising
by 21Rouge. 09/21/18 04:07 AM
Anyone "Wim Hof"ing ?
by Shannow. 09/21/18 02:35 AM
New R1250GS and R1250RT
by 02SE. 09/21/18 12:55 AM
Inside Break Booster & Master Cylinder
by StevieC. 09/20/18 11:22 PM
Inside an Alternator
by StevieC. 09/20/18 11:18 PM
What vehicles are you using Maxlife ATF in?
by BlakeB. 09/20/18 11:10 PM
How a Power Steering Rack Works (Electronic)
by StevieC. 09/20/18 11:00 PM
How a Power Steering Rack Works (Hydraulic)
by StevieC. 09/20/18 10:58 PM
silly wiper problem
by bowlofturtle. 09/20/18 10:33 PM
Canadian Tire Shell Rotella T-6 in Pails
by Snagglefoot. 09/20/18 10:04 PM
Best diesel fuel for cold weather?
by Dickm. 09/20/18 10:03 PM
Type 1 Diabetics - New Research
by StevieC. 09/20/18 10:00 PM
Tire Sizing and Options
by NewEnglander. 09/20/18 09:59 PM
2013 Scion FR-S | Transmission Fluid Questions
by nicknak. 09/20/18 09:47 PM
Newest Members
ScottRousell, Direct_Rejection, donatom, Sylent_Snyper, Ajizzle
66034 Registered Users
Who's Online Now
96 registered members (2013ecof150, 2015_PSD, andyd, 9050lx, 2010Civic, 9 invisible), 1,649 guests, and 35 spiders.
Key: Admin, Global Mod, Mod
Forum Statistics
Forums67
Topics290,754
Posts4,849,705
Members66,034
Most Online3,590
Jan 24th, 2017
Donate to BITOG
Previous Thread
Next Thread
Print Thread
Hop To
Page 1 of 2 1 2
Should I refinance my home? #4688533
03/08/18 10:49 AM
03/08/18 10:49 AM
Joined: Nov 2008
Posts: 123
IL.
jay929 Offline OP
jay929  Offline OP
Joined: Nov 2008
Posts: 123
IL.
Bought my townhome in 2005 for 105,000. I still owe around 55,000 and my rate is 6% for 30 year fixed. Home is probably worth around 70,000

I'm always getting refinance stuff in the mail especially harp

Last edited by jay929; 03/08/18 10:51 AM.
Re: Should I refinance my home? [Re: jay929] #4688535
03/08/18 10:52 AM
03/08/18 10:52 AM
Joined: Jun 2003
Posts: 33,074
ME
eljefino Offline
eljefino  Offline
Joined: Jun 2003
Posts: 33,074
ME
The fees will kill ya.

Re: Should I refinance my home? [Re: jay929] #4688542
03/08/18 10:58 AM
03/08/18 10:58 AM
Joined: Nov 2008
Posts: 123
IL.
jay929 Offline OP
jay929  Offline OP
Joined: Nov 2008
Posts: 123
IL.
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

Re: Should I refinance my home? [Re: jay929] #4688547
03/08/18 11:02 AM
03/08/18 11:02 AM
Joined: Nov 2008
Posts: 12,535
NH
supton Offline
supton  Offline
Joined: Nov 2008
Posts: 12,535
NH
You have to run the numbers. Get an Excel sheet, or at the very least a piece of paper. Calculate what you will spend if you just keep paying as you are right now. Then find out what the closing cost on a refi will cost, then add in what you will now spend. That will tell you more than anything we can tell you.

Will say that this is predicated upon you staying there for the duration. If you move in a year or two, then it is unlikely that you would be ahead by refinancing.

FWIW, I bought mine in 2005 also. 6.125%. Refi'd back in 2010/11 into 3% & 15 years, for the same payment I shaved years off. I watch the rates going up now and think, man am I glad I did that.

Oh, and if you don't have PMI right now, you might pick that up. Bank might decide the house is worth less than you think. When I did a refi I wound up getting PMI--but my total out of pocket was still less, over the long haul.


2011 Toyota Camry, base, 2.5L/6MT, 163k, hers
2010 Toyota Tundra DC, 4.6L/6AT, 144k, ours
1999 Toyota Camry LE, 2.2L/4AT, 190k, his
Re: Should I refinance my home? [Re: jay929] #4688548
03/08/18 11:03 AM
03/08/18 11:03 AM
Joined: Oct 2009
Posts: 3,214
Wet side WA
JohnnyJohnson Offline
JohnnyJohnson  Offline
Joined: Oct 2009
Posts: 3,214
Wet side WA
Fees could kill you. But if they are high on fees go else where. My sister did they years ago when she was looking to replace her 11.75% rate. Then she went back to the bank she got the original mortgage from. They said no problem all fees would up being $500. She went to 6%. You will know in a hurry if they are trying to rob you just walk out the door.


2004 Corolla 124770
Out: VML 5w-30 TG4967 OCI 5007 Miles
In: EDGE EP 5W-30 Bosch 3311 122537 7-18-18
2006 Duramax 74277
Out: T6 5W-40 M1-303
In: T6 5W-40 XG9100 74705 4-22-18
Re: Should I refinance my home? [Re: jay929] #4688561
03/08/18 11:10 AM
03/08/18 11:10 AM
Joined: Aug 2011
Posts: 3,345
Chicago,IL,USA
pandus13 Offline
pandus13  Offline
Joined: Aug 2011
Posts: 3,345
Chicago,IL,USA
Check around your neighborhood for a broker: they could compare multiple banks and be aware of fees+costs.
Also, neighborhood/community banks could help since they may have programs in place. (I assume because of lower value townhome)
Also, check with your local bank.

Where in Illinois could make a difference....


16 Golf SportWagen
13 Mazda5
08 Yaris
04 Elantra
95 accent
95 mystique
97 concorde
Re: Should I refinance my home? [Re: jay929] #4688564
03/08/18 11:11 AM
03/08/18 11:11 AM
Joined: Mar 2008
Posts: 5,840
South Florida
bubbatime Offline
bubbatime  Offline
Joined: Mar 2008
Posts: 5,840
South Florida
If you don't plan on moving soon, then YES, I would absolutely refinance. You probably could squeeze a ten year fixed rate mortgage at 3.65%. Would save you a TON of money, and the mortgage would get paid off much faster and with much less interest.


17 Chrysler Pacifica Mobil 1 5W30
13 Yamaha XT250 Valv MC 10W40
12 Suzuki S40 Rotella 15W40
10 Acura TSX 2.4 PZL Plat 5W30
06 GMC Sierra Nextgen 10W30


Re: Should I refinance my home? [Re: jay929] #4688567
03/08/18 11:13 AM
03/08/18 11:13 AM
Joined: Jul 2012
Posts: 2,308
South Carolina
alarmguy Offline
alarmguy  Offline
Joined: Jul 2012
Posts: 2,308
South Carolina
You dont say what your original mortgage amount was. If it was 100,000 and you refinance now your new payment will be around $407 a month for 15 years, that should include all fees and costs..
Just google online mortgage calculator as its impossible to know exactly, area of the country ect..
I would suggest if you have a nearby credit union to also talk to them.

Last edited by alarmguy; 03/08/18 11:14 AM.

14 Road King (current)
08 VStar 1300 Tourer
07 Suzuki C50
Re: Should I refinance my home? [Re: jay929] #4688572
03/08/18 11:22 AM
03/08/18 11:22 AM
Joined: Aug 2017
Posts: 534
Nebraska
BJD78 Offline
BJD78  Offline
Joined: Aug 2017
Posts: 534
Nebraska
If you do it in the first 2 years and if the interest is at least 2% less it might be worth it. The trouble with refi is that that clock starts all over again. With only 17 years left you would likely be better off just making an extra $50to $100 per month on principle only pay and you would probably shave that 17 yrs down to 14 or 15 years. There are some online calculators that can crunch those #s. Everyone with a mortgage get these HARP mailings. HARP takes away the equity that is built up. Makes the bank ledgers look better for the Government that bailed them out. Harp might have a lower payment per month, but in the long run, you will pay more, especially when they reset your loan, there goes your equity. A quick search of HARP reveals many many consumer complaints. I would be very wary of HARP. Probably not worth restarting the clock if you are already 13 years into a 30 yr mortgage, unless they drop that rate to 2% instead of 6%. Probably cannot get banks to go that low with a 30 yr, a 10 yr or 15 yr mortgage...maybe.


2010 Forester:122K
2009 Sonata :189K
2010 Tucson:55K

OCI 5K using the cheapest dino oil I can buy,usually NAPA or TSC Travelers oil.
Re: Should I refinance my home? [Re: jay929] #4688576
03/08/18 11:25 AM
03/08/18 11:25 AM
Joined: Nov 2008
Posts: 123
IL.
jay929 Offline OP
jay929  Offline OP
Joined: Nov 2008
Posts: 123
IL.
Some good info I bought it for 105,000 and put 20% down so no PMI

Re: Should I refinance my home? [Re: jay929] #4688585
03/08/18 11:36 AM
03/08/18 11:36 AM
Joined: Nov 2005
Posts: 851
Senoia, GA
thooks Offline
thooks  Offline
Joined: Nov 2005
Posts: 851
Senoia, GA
It doesn't cost you a dime to send more money each month.

That's the quickest way to get rid of the mortgage.

If you refi, what's the rate? 4%? The difference on $70k is negligible. The fees are going to cost $2000 at minimum. I bet that $2k would make a better impact on the principle. Then raise the amount you pay every month to as much as you can stand. Make SURE it is earmarked for PRINCIPLE ONLY.

Re: Should I refinance my home? [Re: jay929] #4688596
03/08/18 11:49 AM
03/08/18 11:49 AM
Joined: Oct 2014
Posts: 1,219
NoVA
Jimzz Offline
Jimzz  Offline
Joined: Oct 2014
Posts: 1,219
NoVA
Probably not worth it now. Rates have come back up and the money you would spend on fees you could just pay extra into the mortgage.

So pay extra every month into the principal and you will have it paid off in no time.


yup
Re: Should I refinance my home? [Re: jay929] #4688598
03/08/18 11:52 AM
03/08/18 11:52 AM
Joined: Jun 2009
Posts: 1,815
Wisconsin
wallyuwl Offline
wallyuwl  Offline
Joined: Jun 2009
Posts: 1,815
Wisconsin
A good number of banks have fees under $1000 on a refinance. Some around $500. If you refinance with the same lender they may be close to zero. We bought our house in 2008 with a 30 year fixed and refinanced in 2013 to a 5/1 ARM with a 20 year amortization and cut our rate more than in half. Our payment went down about $100 per month and we were applying about $100 more per month toward principal. We knew we'd leave the house before it started adjusting in 5 years (and we did). We refinanced with the same lender for zero closing costs, because they didn't have to do the appraisal or any of that.

You'd have to run the numbers, but if you can find a low fee refi then it is probably worth it to lower your term to 10 or 15 years and lower the rate (you should be able to get less than 4% on a 10 or 15 year, maybe even close to 3%). It might even lower your payment, too.

Look at local/regional banks and credit unions. The big guys will screw you on fees.

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.

Re: Should I refinance my home? [Re: jay929] #4688599
03/08/18 11:54 AM
03/08/18 11:54 AM
Joined: Feb 2012
Posts: 3,870
NEUS
Bandito440 Offline
Bandito440  Offline
Joined: Feb 2012
Posts: 3,870
NEUS
We have no way of knowing without detailed information on what a new mortgage would cost you. The comments here of yes or no are provided with insufficient data.

Shop around for a 15 year fixed and let us know the best interest rate that you can get as well as the closing costs.


'14 Grand Cherokee EcoDiesel
Rotella T6 5w-40 & OEM filter
Re: Should I refinance my home? [Re: jay929] #4688618
03/08/18 12:11 PM
03/08/18 12:11 PM
Joined: Sep 2010
Posts: 6,990
Texas
4WD Offline
4WD  Offline
Joined: Sep 2010
Posts: 6,990
Texas
Originally Posted By: jay929
Bought my townhome in 2005 for 105,000. I still owe around 55,000 and my rate is 6% for 30 year fixed. Home is probably worth around 70,000

I'm always getting refinance stuff in the mail especially harp


Are you saying it lost value or we talking equity value?

Page 1 of 2 1 2

BOB IS THE OIL GUY® Powered by UBB.threads™