Money Refinancing Home!

e_train69 · 03-26-2009, 09:22 AM

I know there are a lot of financial gurus on the planet here, so I thought I run this by you.

I am looking at refinancing my home and am a little nervous about overlooking any details. I know there can be a lot of hidden costs. I am currently on a 30 year fixed loan at a 5.75% interest rate. I am looking to refinance to a 15 year loan. I checked with my current loan company (Countrywide) and they can do a 15yr. fixed rate at 4.75%.

The question is: is it worth it to refinance, and what are some hidden costs or problems I should look for.

**MahiMike** · 03-26-2009, 09:27 AM

without doing the math, I'm guessing your pmts will go up. Why would you want that? You can make extra pmts to shorten the time frame. 1 extra pmt per year on a 30 yr note brings it down to 22 yrs. Also, you could pay semi-monthly (2 pmts per mo) and cut it another 5 yrs or so. You never know if you'll need that extra $ and anything less than 8% long term is better used investing in other places.

Chief Pote · 03-26-2009, 09:43 AM

Quote:

Originally Posted by MahiMike

without doing the math, I'm guessing your pmts will go up. Why would you want that? You can make extra pmts to shorten the time frame. 1 extra pmt per year on a 30 yr note brings it down to 22 yrs. Also, you could pay semi-monthly (2 pmts per mo) and cut it another 5 yrs or so. You never know if you'll need that extra $ and anything less than 8% long term is better used investing in other places.

I'd sure like to see your numbers...but you're incorrect. Compare the interest paid over the life of both loans. You can not make up that difference in investments with that little bit of money. What about his age at 20 years or 25 years and does it lengthen his retirement age?

Bill Lundberg · 03-26-2009, 09:53 AM

There really aren't any HIDDEN fees. People always say that and the truth is mortgage originators are required by law to disclose all fees associated with a loan. If you read your preliminary disclosures you will find that nothing is hidden from you. Take the Good Faith Estimate you received in your preliminary disclosures with you to the closing and compare to be sure the fees are the same. It's really as simple as that. Reading.

4.75% is a good rate today on a 15 year loan. If you can afford the higher payments a 15 year loan is a great way to go.

e_train69 · 03-26-2009, 09:56 AM

I am looking at refinancing $68,000.

**sd4chiefs** · 03-26-2009, 09:59 AM

This is a good site that can answer a lot of your questions.

http://www.walletpop.com/calculators/mortgage

e_train69 · 03-26-2009, 10:02 AM

Thanks, I'll take a look at that site.

03-26-2009, 09:22 AM	Topic Starter
e_train69 Starter Join Date: Dec 2001 Location: Oklahoma Casino cash: $4154900	Refinancing Home! I know there are a lot of financial gurus on the planet here, so I thought I run this by you. I am looking at refinancing my home and am a little nervous about overlooking any details. I know there can be a lot of hidden costs. I am currently on a 30 year fixed loan at a 5.75% interest rate. I am looking to refinance to a 15 year loan. I checked with my current loan company (Countrywide) and they can do a 15yr. fixed rate at 4.75%. The question is: is it worth it to refinance, and what are some hidden costs or problems I should look for.
Posts: 68

03-26-2009, 09:27 AM	#2
MahiMike He's Mahomie! Join Date: Aug 2001 Location: Jax, FL Casino cash: $10023443	without doing the math, I'm guessing your pmts will go up. Why would you want that? You can make extra pmts to shorten the time frame. 1 extra pmt per year on a 30 yr note brings it down to 22 yrs. Also, you could pay semi-monthly (2 pmts per mo) and cut it another 5 yrs or so. You never know if you'll need that extra $ and anything less than 8% long term is better used investing in other places.
Posts: 17,387

03-26-2009, 09:53 AM	#4
Bill Lundberg American Join Date: Jun 2003 Location: Overland Park Casino cash: $10004925	There really aren't any HIDDEN fees. People always say that and the truth is mortgage originators are required by law to disclose all fees associated with a loan. If you read your preliminary disclosures you will find that nothing is hidden from you. Take the Good Faith Estimate you received in your preliminary disclosures with you to the closing and compare to be sure the fees are the same. It's really as simple as that. Reading. 4.75% is a good rate today on a 15 year loan. If you can afford the higher payments a 15 year loan is a great way to go.
Posts: 3,919

03-26-2009, 09:56 AM	#5
e_train69 Starter Join Date: Dec 2001 Location: Oklahoma Casino cash: $4154900	I am looking at refinancing $68,000.
Posts: 68

03-26-2009, 09:59 AM	#6
sd4chiefs error 404 Join Date: Aug 2000 Location: Bizarro World Casino cash: $8650445	This is a good site that can answer a lot of your questions. http://www.walletpop.com/calculators/mortgage __________________ “It's Easier to Fool People Than It Is to Convince Them That They Have Been Fooled.” – Mark Twain.
Posts: 3,997

03-26-2009, 10:02 AM	#7
e_train69 Starter Join Date: Dec 2001 Location: Oklahoma Casino cash: $4154900	Thanks, I'll take a look at that site.
Posts: 68