Question by gregg s: mortgage refinancing advice?
I have a 15 year fixed rate mortgage at 4.75% balance is 54,000 I thinking of getting a refi at 3.8 fixed for 15 years i have plenty of equity in the house and want to take out about 25,000 cash this loan is a no cost loan. current payment is 825 mo. new payment would be 580mo. I have 7 years left on my old loan. so I understand I would be starting at 15 years again. money is so cheap to borrow right now i cant see any negatives? any advice
I understand there is no such thing as a no cost loan- I;m going to pay a bit higher of an interest rate 3.8 instead of 3.65 thats the trade off- so im saving money up front instead of a slightly lower payment . I’ve doubled checked values so im certian about my property’s value and my fico is 815
also their are no re-fi costs- my loan will be exactly where it stands today- that’s the reason for the slightly higher rate
Best answer:
Answer by Judy
“no cost loan” – no it isn’t, do the math. But if you’re going to be in the house for quite awhile longer, could be a good idea. What about refi costs? Are those rolled into the new loan?
What do you think? Answer below!
In this economy there is no “no cost loans” at best the costs are rolled into the loan. What value are you going with on your home because there down across the board might want to double check the values in your area before applying. Also watch what company your trusting there’s a lot of shady companies out there the interest rate is really low, but unless you have perfect credit and debt to income ratio your not getting the 3.8.