Should I Refinance My Home

Question: Should i refinance my home?

(Posted by: pattypat999 on 2007-08-02 11:49:46)

I have a 30 year adjustable home mortage. I have paid on this loan for 24 years. I have 6 years to go and only owe $13, 500 on the loan now. Adjustable rates are on the rise and I am on a fixed income with perfect credit. I don't know a lot about refinacing. Is it worth refinacing for just $13, 500?

Posted by: rdnkchic2003 on 2007-08-02, 12:00:58

Personally I would not. You will be charged closing costs to re-fi and that will be rolled into the amount you currently owe. Plus most people would try and refinance for a cash-out which means you would then owe the full amount of your house. That would be a horrible mistake. If you do choose to refinance, you need to see what your current interest rate is, what your new rate would be and do the math to see what you would be saving. Then ask what the closing costs are for the re-fi. If the amount of the closing costs is more than your savings it's definately a bad decision. I wish I only had 6 years left to go on my home. I'd hang in there.

Posted by: ed m on 2007-08-02, 11:57:03

I wouldn't = = but if you are allow to pay extra to reduce the balance i would advise doing that.

Posted by: bucklehoneysuckle on 2007-08-02, 11:58:06

If you can refinance and get a lower interest rate, then I would take that into consideration.

Posted by: Suzy on 2007-08-02, 12:27:35

If you plan to stay in the house 5+ years, I would refinance. You have a lot of equity in the house that could be earning more for you.

Posted by: Pengy on 2007-08-02, 13:14:48

I would go to the bank and see what a 10 year mortgage would cost you per month. Even with the fees etc, you might have substantial savings per month. Get the numbers first it will better help you to decide. You would only be adding four years to the loan, but for those 4 years your rate would not go up. Again it is worth checking out.

Posted by: John on 2007-08-02, 15:25:16

Yes it will be if you can save only 1% then you save thousands that is also good. So you can think of refinancing. To know more you can visit refinance-homeloans.blogspot.com

Posted by: stan c on 2007-08-02, 22:07:29

Since you're half way there, you paid about 70% of your interest so I would just leave it be. As suggested, if you can pay down your mortgage, that would be the fastest way to do it.

Posted by: Casey C on 2007-08-03, 05:35:51

Everyone's situation is different. There are a number of good reasons to swing either way. You can always give me a call or visit my website at CaseyCasperson.com... my phone number is on the site. it's a chase supported website. If it sounds like there is something I can do for you, great. If not, you'll have piece of mind.