I have a bad mortage situation (interest rate is way to high) and i am trying to refi..... i owe about 25,000 and have a 15,000 balloon payment due in three years..... any one have any ideas on how they would work the refinance.....thanks in advance
Does it have a prepayment penalty? I don't think that you would have a problem if it doesn't. However, if you are not going to cash out at all I am not sure if a re-fi will help you with the fees involved. Maybe your best bet would be to talk to a financial advisor (my bank offers their services free to customers).
yes, there is a prepayment penalty, but if figure that if i can get the interest below 10% it would be worth it. and it seems like i can right now. especially with the principal being so low, and I have a ton of equity in the place....
Normally the prepayment penalty is a specific number of month's interest payment. What is your current interest rate and you mentioned a balloon payment, when is the balloon due? fla-tan
interest rate is 11.49 balloon due 4/2014, i said three years but i was mistaken. and before all of you guys say WTF was she thinking..... i closed on this house two days before my mom died, and basically was taken advantage of by my broker at the closing.
Why do you say you were taken advantage of? If your credit was excellent at the time, you might have qualified for a standard mortgage at 7 to 8% fixed with 30 years term. However, if you figure in the normal points and closing costs associated with a fixed rate mortgage,plus amortizing the entire amount,your monthly payments would have been appreciably higher than they are now. Even if you refinance now you will likely be paying more per month then with your existing mortgage. Remember, your interest payments are actually less (net) than you think, as they are deductible on your income tax.The best time to refinance would be in 2014.
http://ray.met.fsu.edu/~bret/amortize.html "RUN" THE NUMBERS...if the payment is near what you pay now...and are AFRAID to wait...do it now while rates are "WAY DOWN"... This is just one of MANY fill in forms for AMORTIZATION SCHEDULES...(YOU CAN EVEN PUT IN A "BALLOON")
uniondiva | 615 I have a ton of equity in the place....Uniondiva ====== ========== =========== You don't want to have a loan with to much equity left over!
How long have you been in your house? Have you been current on your present mortgage? You will want to maximize the amount of equity you can pull from your house. Equity in a house is sort of like money under the mattress....it may make you feel good, but is actually costing you money. Invest your equity and you will come out ahead. fla-tan
How long have you been in your house? Have you been current on your present mortgage? You will want to maximize the amount of equity you can pull from your house. Equity in a house is sort of like money under the mattress....it may make you feel good, but is actually costing you money. Invest your equity and you will come out ahead. fla-tan How right you are: You should never allow the bank ho be over collateralized.
