Mortgage - Refi

[lupi]

Saw some recent talk on here about mortgages so thought I'd toss this out there.

I have been thinking about doing a refinance now that house values in my area have just about doubled since I bought (about 4+ years ago) to use mostly for a remodel (area is fairly nice, house just could be a little bigger and more modern) and some extra cash out. I didn't have a bad interest rate when I got it, but didn't realize how much more I can save by the extra half point or so (less than $100 on current payment for almost a 50% increas on original loan :Q). Below is a chart I just did from my companies website.

My thoughts seem good-correct/comments?





Current Loan 30 Year Fixed
Loan amount: $102,399.91 $161,626.60
Monthly payment: $931.00 $981.97
Interest Rate: 7.000% 6.375%
Points: 0.000 0.000
Annual percentage rate (APR): 0.000% 6.511%
Cash To Close: $0.00 $0.00
Monthly savings: $0.00 ($50.97)
Months to break even: 0 0
Total payment savings: $0.00 ($12,232.80)
Term: 0 360

 

[HeroOfPellinor]

$931 is high for your loan amount. Looks like property tax is added onto that payment and not the new one.

 

[lupi]

Ah, looking at it you seem to be correct. I think my tax is about 175 a month. So new payment would be around 1200, which still comes in at under 20% of gross.

 

[HeroOfPellinor]

102,399 at 7% is $681. Add $175 and it's only $856. Do you pay insurance separately?

 

[lupi]

No, mortgage company handles it through escrow. The 103K is the current value, original was 110k.


Going off from a hardcopy statement of 2 years ago, per month tax was $106.

 

[richardycc]

you were paying 7% 4yrs ago when the going rate was 4-5%, which means your credit score arent that great, so what makes you think you can get 6.375% now?

 

[lupi]

Other than this being my first house, with a VA loan, I got the loan just before the rates really started to tumble. Seeing how I routinely get 50-75K equity loan offers in my mortgage bill from my mortgage company I don't forsee much difficulty in that area.

 

[Nerva]

refi into a hybrid 5-yr arm...

 

[Thorny]

Cash out refinancing is usually more costly, either with up front fees or a higher rate. Last time I refi'd it was going to cost a percent or two extra of the total loan to do a cash out of more than 1000. Don't forget about the extra money it cost to refinance,even without cash out your usually in the tune of several thousand dollars. If you plan on keeping your house for a long time it's worth it, but be sure before you drop that much skrill.

 

[lupi]

Originally posted by: Thorny
Cash out refinancing is usually more costly, either with up front fees or a higher rate. Last time I refi'd it was going to cost a percent or two extra of the total loan to do a cash out of more than 1000. Don't forget about the extra money it cost to refinance,even without cash out your usually in the tune of several thousand dollars. If you plan on keeping your house for a long time it's worth it, but be sure before you drop that much skrill.

Ya, will have to see if there are any small print details that doesn't come up in their basic web-calculator thing as it didn't show any extra cost there.

When I bought the house the insurance company only put it down as a 40k hit, said the rest of the property value was strictly from the land. As my latest tax access has just about double since I bought it, tearing down half the house and expanding seems like an easier/more cost effective process.

 

[Thorny]

Originally posted by: lupi

Originally posted by: Thorny
Cash out refinancing is usually more costly, either with up front fees or a higher rate. Last time I refi'd it was going to cost a percent or two extra of the total loan to do a cash out of more than 1000. Don't forget about the extra money it cost to refinance,even without cash out your usually in the tune of several thousand dollars. If you plan on keeping your house for a long time it's worth it, but be sure before you drop that much skrill.

Ya, will have to see if there are any small print details that doesn't come up in their basic web-calculator thing as it didn't show any extra cost there.

When I bought the house the insurance company only put it down as a 40k hit, said the rest of the property value was strictly from the land. As my latest tax access has just about double since I bought it, tearing down half the house and expanding seems like an easier/more cost effective process.

Don't forget that remodeling/adding on usually require permits from the city/county. Those cost money to get, and then ALOT of money when the county automatically re-assess your home. You could see your property tax double. Of course, if you don't get the permits and don't get caught the county will never know

Just trying to make you aware of more possible charges so we don't see an OMFGWTH thread from you in 3 months

 

[lupi]

hehe, good one.

Hopefully when the re-assess comes they will just go with the magical double assement I've already gotten.