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