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Refinance Advice That Can Help you Save - The Bills.com Blog
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Refinance Advice That Can Help you Save
Question: I am considering consolidating my mortgage and HE loan. My mortgage has $159K remaining and is on a 5.875 30 yr loan. However, I pay an additional $500 per month so I am paying it closer to a 15 yr loan. My HE loan has about $62K remaining. It is at 6.74% and on a 10 yr loan. I am looking at combining thetwo on a 15 year mortgage. My current mortgage company Countrywide has offered me a 15 yr fixed loan at 5.875%, which is my current mortgage rate. They would also charge me 1.25 points. I plan on staying in this home for a while, but I don't know if getting the HE loan (62K) down from 6.74 to 5.875 makes this worth it when you consider the points they would charge me and the fact that my current mortgage is already at this rate.
Answer: You'll be saving $30 per month by lowering the rate on your 2nd mortgage (and nothing
on your 1st mortgage as the rate will remain the same). With a new loan balance of $221K, you'll be paying $2,763 in points upfront. In order for the new loan to make sense you'd have to stay in the house for at least 8 years just to break even. Unless one of your two loans is coming up on an adjustment in the next few years, I would recommend staying with your current loans. Or go back to Countrywide and ask them to remove the 1.25 points.
If you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare
mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: Mortgage Refinance Quote
These lenders should be able to tell you the loan terms available to you based on your current financial situation, and tell you if a refinance loan can help save you money over your current loan.
I hope the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog/
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1. Posted by k Edsell on Wednesday 15th October 2008 09:08
What is fee simple and leasehold on a form that I have noticed checked on a preliminary loan we have filed for. thanks
2. Posted by Bill on Wednesday 15th October 2008 09:16
Fee Simple is the type of ownership that most of you are accustomed to. You purchase property, receive title and it’s yours or your heirs forever, or until such time as the property is disposed of. Leasehold, conversely, is the property to which title remains yours for a specified period of time, at the end of which the property reverts tot the part that hold title in Fee Simple. The most common of the Leasehold title is to convey land upon which improvements have been made or are to be made, such as a condominium or a single family residence. The lease is usually for a period of time in excess of fifty years during which time you may exercise the rights of ownership as if you held title in fee.
3. Posted by Chris Edsell on Saturday 25th October 2008 21:57
on our refiancing papers it states I(we) have applied for a FHA mortgage with a direct endorsement. What is direct endorsement.
4. Posted by Bill on Monday 27th October 2008 07:50
Read more here: http://www.hud.gov/offices/hsg/sfh/ins/direct-r.cfm