Is Refinancing Worthwhile?

How do I know if it is worthwhile to refinance my loan?
I owe $ 110000.00 On my first at 6.375% 30 year (payment $ 686.24) and $55000 at 6.95% 15 year ( payment $ 492.81) on my second. This is a second home worth about $550000. I want to get rid of the second HELOC and get the payment down. My FICO score is around 760 the property is in Laguna Niguel, California

NMLS #324982  W J Bradley Mortgage Capital LLC. 
20341 SW BIRCH STREET # 330     Newport Beach, California 92660
(949) 784-9699

Mortgage amount: $
Mortgage term: years or months Interest rate: % per year Mortgage start date:
Monthly Payments: $

Verse existing payments of $1179.73

Because you want to consolidate your second in to a lower first, the refinance is considered cash out. While lenders have gotten more conservative about cash-out refinances, owning your second home with low loan to value at $550,000 -- especially with your credit score – a make sense decision for our Underwriters.

The downside of a first mortgage refinance is the higher closing costs associated with that mortgage. The national average for closing costs on a $200,000 loan in 2012 was $2590.  Besides lowering your payment, you should definitely look at a shorter-term mortgage, like a 15-year fixed-rate mortgage, so you don't end up spending a ton of money on interest by extending out to 30 years. As I write this, W J Bradley's national average for a 15-year fixed-rate mortgage is 2.875% percent or 2.911% APR

The interest rate differential between a new 15-year fixed-rate mortgage and your existing 6.375 percent mortgage on your second home should give you enough of a reduction in interest expense to justify the refinance on its own.

Even if you decide to refinance thirty years, the payment is going to reduce $ 391.99 per month. We can close a refinance in less than twenty nine days, let's save you some money.


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