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2 years old mortgage at 4.875%

I purchased our home in 2009 and borrowed $168,000. Our home value has been estimated at $224,000. Do I stand to gain anything by refinancing now, we have a loan balance of approximately $149,000? My husband and I have great credit (755 FICO). Do the closing costs also get rolled into the loan? by barbwh_285_587 from Richmond, Virginia. Oct 7th 2011 Reply


Randy Raque (rraque)
#8 ranked lender in Kentucky - 7 contributions

Yes ,Your closing can be rolled into your loan.Interest rates are low enough that You will gain and save money by refinancing.An application will take 5 minutes.Please feel free to call at 866-766-1920Randy Raque

Oct 7th 2011
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Jon Higginbotham (jon.higginbotham)
#12 ranked lender in Virginia - 14 contributions

Yes ma'am, your closing costs can be rolled into the new loan amount. Based on my calculations, you would need to save .839% off of your current rate to recoup your costs in a reasonable amount of time - 20-30 months or less. I can be more exact with more information but there are other factors that would determine home whether a refi would suitable in your situation. Things like how much longer you will live there, etc. In properly planning for your mortgage there are other considerations as well like possible income increases or decreases, the need for a large purchase in the future, retirement and college savings goals and accomplishments, etc.I'd be happy to give you a personal plan and help you and your husband make an informed decision. You can reach me at (540)946-3711 or (540)649-4001 and jon@summitfunding.net. Thanks for the question...

Oct 7th 2011
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,707 contributions

Get written quotes from your local mortgage broker (Not a Bank), and find your payoff amount, and new loan amount... You need to be cautious of your Net Tangible Benefit. If you take your payoff and deduct your new loan amount, that is the net amount your loan is costing you... divide that by your monthly savings and see how many months it will take to "Pay Back" the costs to refinance... if it's more than 3 years, then you should pass... WilliamAcres.com

Oct 7th 2011
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Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,823 contributions

It depends. Did you originally borrow $168,000 or was that the purchase price. If you borrowed $168,000 at 4.875% interest, based on a 30 year amortization, your principal balance would be around $162,000. Assuming you are not making extra Principal payments each month, and you plan to be in the home for at least another 3 years. It would probably make sense to refinance. In general, if the rate drop is less than 0.5% or you don't plan to be in the home for at least 5 years, I would not recommend a refinance. Yes the closing costs can, but don't have to be rolled into the new loan as long as there is sufficient equity.

Oct 7th 2011
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Adrian Brown (AdrianBrown)
#5 ranked lender in Virginia - 12 contributions

Interest rates are at an all time low! You stand to gain a lower mortgage payment, lower rate and save money over the life of the loan. You have the option to roll the closing cost into the loan or pay the closing cost out of pocket. I would recommend you include it in the loan amount. Please feel free to give me a call if you would like to discuss this in further detail. It does not cost you anything to see how much you can save.Adrian Brown757-672-6550

Oct 7th 2011
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