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-   -   Refinance current mortgage (https://www.askmehelpdesk.com/showthread.php?t=71362)

  • Mar 12, 2007, 03:12 PM
    phyllis123
    refinance current mortgage
    I owe 52k on first mortgage (payment = 469.00- including tax & insurance-int.rate 6.5
    I owe 13k on second (3yrs left at 400.00 a month.
    I owe 7k on credit card

    I can refinance for 72k for approx 570.00 a month, 30 yrs... at cost of 1686.00 for re-finance
    at int rate of 6.375, I have excellent credit.
    pay off old loan, second mortgage and 4k on credit card

    Is this something I should consider.


    my income is 2000.00 a month with 100k in stock & bonds and money market acct.


    I really appreciate your help as I am perplexed and at 62 yrs old and retirred, I don't need to make a mistake.

    best regards,
    Phyllis
  • Mar 12, 2007, 03:47 PM
    Mortgage Advisor
    Hello Phyllis,

    If you are refinancing in order to lower your monthly payment obligation, then yes, I would say it makes sense for you..

    Your payment will be lower, and the rate of interest will be lower as well..

    However, if you can afford a higher payemnt, you may want to look at a 15 year mortgage option so that you can pay off your debt sooner..

    If you have perfect credit, you should qualify for a rate under 6.375%.. For good credit customers, I'm giving rates as low as 5.875% right now..

    The broker your using is most likely charging you points on your rate in order to make a profit from your loan.. (this is how brokers get paid)

    I work with a wholesale lender, so we don't have to charge points or fees to make a profit on a lona.. . We have a vested interest in getting your business for long term, not to just make money up front like a broker...

    Feel free to contact me, you can get my information in my profile..

    I hopw his helps!

    Good Luck!
  • Mar 13, 2007, 01:03 PM
    Dolson
    Quote:
    Originally Posted by phyllis123
    i owe 52k on first mortgage (payment = 469.00- including tax & insurance-int.rate 6.5
    i owe 13k on second (3yrs left at 400.00 a month.
    i owe 7k on credit card

    i can refinance for 72k for approx 570.00 a month, 30 yrs....at cost of 1686.00 for re-finance
    at int rate of 6.375, I have excellent credit.
    pay off old loan, second mortgage and 4k on credit card

    Is this something I should consider.


    my income is 2000.00 a month with 100k in stock & bonds and money market acct.


    I really appreciate your help as i am perplexed and at 62 yrs old and retirred, I don't need to make a mistake.

    best regards,
    Phyllis
    Whatever you do, I would suggest paying off your credit card - even if you have to refinance to do it.
  • Mar 16, 2007, 12:59 PM
    clover23
    Quote:
    Originally Posted by phyllis123
    i owe 52k on first mortgage (payment = 469.00- including tax & insurance-int.rate 6.5
    i owe 13k on second (3yrs left at 400.00 a month.
    i owe 7k on credit card

    i can refinance for 72k for approx 570.00 a month, 30 yrs....at cost of 1686.00 for re-finance
    at int rate of 6.375, I have excellent credit.
    pay off old loan, second mortgage and 4k on credit card

    Is this something I should consider.


    my income is 2000.00 a month with 100k in stock & bonds and money market acct.


    I really appreciate your help as i am perplexed and at 62 yrs old and retirred, I don't need to make a mistake.

    best regards,
    Phyllis
    Good day, Ms. Phyllis. I've been a Wisconsin mortgage consultant for over five years. You appear to be saving money by refinancing the two mortgages, so refinancing those into a single mortgage with a lower payment makes sense. You may save additional money by paying off your credit card with the refinancing, but you are PROMOTING the credit card debt from unsecured to being secured by your house... not too smart, but everyone encourages people to do this.

    If you can manage to pay the credit card - which should be easier with the lower mortgage payment - I would NOT add that to your mortgage balance... you mortgage will be $4,000 less! The "cost" you include is not clear - is that your TOTAL transaction cost or the loan origination fees? Who pays for the appraisal, title search, closing/settlement fee, and loan processing? Are these included in the $1600 figure? Is the $2,000 month income your gross or net (take-home) income? How much are your taxes & property insurance? Are these included in the payments you gave? I hope this helps!
  • Jun 5, 2007, 10:13 PM
    mu1ez
    Quote:
    Originally Posted by phyllis123
    i owe 52k on first mortgage (payment = 469.00- including tax & insurance-int.rate 6.5
    i owe 13k on second (3yrs left at 400.00 a month.
    i owe 7k on credit card

    i can refinance for 72k for approx 570.00 a month, 30 yrs....at cost of 1686.00 for re-finance
    at int rate of 6.375, I have excellent credit.
    pay off old loan, second mortgage and 4k on credit card

    Is this something I should consider.


    my income is 2000.00 a month with 100k in stock & bonds and money market acct.


    I really appreciate your help as i am perplexed and at 62 yrs old and retirred, I don't need to make a mistake.

    best regards,
    Phyllis
    Look into a Reverse Mortgage.

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