michaela080
First Time Poster
Cash: $ 0.25
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Joined: 02 Aug 2010
Location: Indianapolis
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| Refinancing Question |
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We are looking to refinance our house since rates are so low. We bought it 5 years ago for $133,000, and now owe $98,000 principal on a 30 year mortgage at 6.675%. We have been overpaying for the last few years. We could afford to get a 15 year mortgage if we get a good rate, which I know in theory is better. But my thought is, maybe we should get a 30 year mortgage, but overpay comparable to a 15 year payment, and then if something should happen, like huge medical bills or something, we could drop down to the regular payment and not have to worry about forclosure or anything. Is this a good idea?
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Mon Aug 02, 2010 7:24 pm |
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oldguy
Senior Member
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Location: arizona
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quote:
Is this a good idea?
That is what I do when I refi our rental houses. You pay maybe an extra 1/8% but it is good insurance - and you will have the use of that inexpensive fixed rate money locked in for 30 yrs.
As for prepaying it - that is a personal decision. I never do - with our loans I invest the money elsewhere with the goal of earning a better return than what the mortgage rates are. I've had very good results with that over the past 35 yrs - but as always, the past doesn't guarantee future results.
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Wed Aug 04, 2010 1:53 am |
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anne.jaa31
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Location: anne.jaa31
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The current payment of the loan for the new loan, usually the same size, and the same property as collateral. You can find out if you pay to save on interest costs must be weighed against the reasons to refinance include reducing the length of time refinancing.Other mortgage, or change the fixed and variable mortgages.
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Tue Sep 07, 2010 4:32 am |
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moonraker1
Full Member
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Joined: 21 Aug 2010
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Take proper research before choosing refinance as it involved extra costs to you.
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Sat Sep 18, 2010 9:31 am |
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