Thread: Any Mortgage Peeps?
12-17-2012, 10:44 AM #1
Any Mortgage Peeps?
Any Mortgage peeps out there. Im wondering if it would be a benefit to refi. I have six years left on a 15year loan @ 4.75%
12-17-2012, 10:52 AM #2
- Join Date
- Jun 2010
- Milwaukee WI
I bet there wouldn't be much benefit. I guess it would all depend on what your outstanding loan balance is. You would have to weigh the interest savings versus the new fees associated with a new loan.
12-17-2012, 11:07 AM #3
The outstanding balance is aprox 1/4 of the current value.
12-17-2012, 01:47 PM #4
Re: Any Mortgage Peeps?
Ill call you later.
12-17-2012, 01:55 PM #5
+1 on Bryan's analysis: Your P & I may be lower than you're currently paying, but the actual costs of the loan (Point/Orig. Fee, Appraisal, Atty., Title, Recording...) may be more than what you'd actually save.
I'm in the business and actually came across this very scenario a few years ago. After a lot of effort, I could find no conventional, installment mortgage that offered a rate low enough to justify what the fees would cost, based on my balance at the time.
12-17-2012, 03:56 PM #6
Remember too that in the last 6 years of that 15yr mortgage the interest part of the payment is around only 25% of the total monthly payment and is dropping steadily.
12-18-2012, 01:59 PM #7
- Join Date
- Jun 2009
- Pleasant Grove, UT
I just refinanced into 15 year at 3% with no cost for me (or rolling more money into the loan.) In other words, I took a bit of a higher rate in exchange for them paying my closing costs. I suppose it depends where you're at, but this was a no lose situation for me. I could sell my house in 3 months and still come out ahead. So, I think if you worked it right, you'd be fine.
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