I have a 5 year arm which can ride out for 2 more years at 5.8%
The 15 year rate is about 6.0% and be refinancing i would also eliminate PMI and be making $550+ payments towards principal...
The flipside is to ride out the 5 year arm, contact the lender to remove pmi, and start paying $500+ plus towards principal for the remaining 2 years in hopes that interest rates fall again.
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posted: Oct. 15, 2007 @ 11:41a
psychtobe
Senior Member - 2K
posted: Oct. 15, 2007 @ 11:45a
swordfish01 said: I have a 5 year arm which can ride out for 2 more years at 5.8%
The 15 year rate is about 6.0% and be refinancing i would also eliminate PMI and be making $550+ payments towards principal...
The flipside is to ride out the 5 year arm, contact the lender to remove pmi, and start paying $500+ plus towards principal for the remaining 2 years in hopes that interest rates fall again.
Any help?
Thanks Assuming you're planning to stay in the house for more than 2 years, you should refi now at 6% (assuming low fees). If rates drop a lot you can always refi again. You'd be giving up 0.2% interest for the certainty of fixed rates and the elimination of PMI.
this doesn't seem very complicated.
mhesidence
Dismembered Member
posted: Oct. 15, 2007 @ 11:46a
Magic 8 ball says "Ask again later".
Seriously no one can see the future.
swordfish01
Member
posted: Oct. 15, 2007 @ 11:51a
I'm working with Lending Tree dot com on this deal. Seems to be a good route to go...
I have considering doing a 30 year mortgage since the rate difference is from 6.0 to 6.3 and then just agressively pay the loan at a 15 year payment.. This way if I every get in trouble I can pay the 30 year amount for that month.
However Im pretty confident in my ability to pay the 15 year... it is about 400 dollar difference...
Im giong to pay about 3000 in closing cost and then about 800 in state taxes to make this happen, but will roll it into the loan...
Sound like a good thing to do? any comments on using lending tree?
psychtobe
Senior Member - 2K
posted: Oct. 15, 2007 @ 11:53a
Lending Tree is almost never the cheapest. Have you checked PenFed and some other lenders? The airline miles you get by going with Lending Tree are never enough to make up for the higher rate.
How quickly do you think you'll prepay / repay the loan? We don't know your outstanding balance so can't judge the impact of the $500/$550 prepayments.
swordfish01
Member
posted: Oct. 15, 2007 @ 12:19p
Good to know that lending tree is not the cheapest...
The loan balance is $140k
15 year - 6.1% - $1443/mo with tax
30 year - 6.3% - 1120/mo with tax
I plan to stay here another 5 years or so... maybe longer.
swordfish01
Member
posted: Oct. 15, 2007 @ 12:27p
I am going to call the current mortgage lender (ASC) and see what it will cost to get reappraised and the PMI removed. If it is no big deal. I can get it taken off ($108) and then make larger payments towards principal on the current rate of 5.8%.
I have a solid 2 more years on this loan...
swordfish01
Member
posted: Oct. 15, 2007 @ 1:20p
Looks like my current lender is going to make it hell for me to get the PMI off. They will want pictures of the before/after improvements...
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