Financing in 17090>Question Details

Teresa, Home Buyer in Shermans Dale, PA

I bought a property for 150,000 on 15 YEAR AT 5.5% in 2003, I owe 73,000. Would it be worth it to refinance for 15 years at a lower rate?

Asked by Teresa, Shermans Dale, PA Wed Oct 13, 2010

0 votes Share Flag Financing in 17090

Help the community by answering this question:

Answers

6
It depends upon your goal.

You are paying so much per month in principle now - it may not be worth the expense of the refinance.

It seems as if you have been paying down the loan quickly. Is it really worth it?

Check with a mortgage banker and have them run the numbers.

Good Luck!

If you like the answer - please consider making it a "Best Answer" !

Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
703-216-9100
1 vote Thank Flag Link Wed Oct 13, 2010
It has been said 2% lower than definitely, but now even 1% can make a difference if you find a lender with NO fees, If you do, NOW is the time, we are some where around the bottom, so I anticipate at best rates staying FLAT, & at worst starting to rise again. Foreclosures are on the decline.
0 votes Thank Flag Link Fri May 17, 2013
With 15 year rates being around 3.375%, it seems to me you need to refinance. If it doesn't lower your payment that much at least you'll be paying less in interest over the next 15 years.

Andrew and Elena Ollick
Amerivest Realty
239-206-4500
eo@oceanhomesrealty.com
Latest Post: Foreclosure Halt creates Problems
http://www.andrewollick.com/realestateblog
0 votes Thank Flag Link Wed Oct 13, 2010
I have always heard that if you will be lowering your interest rate by 2%, then it is worth refinancing. I work with a loan officer that is excellent. His rates and closing cost are very competitive and usually beat the competition. His name is Jason Sheaffer and he is with Prosperity Mortgage (Wells Fargo). His cell number is 717-360-6372, Office: 717-267-2243
It won't hurt or cost you anything to find out.
Good Luck!
0 votes Thank Flag Link Wed Oct 13, 2010
Hi Teresa. A two point spread like the one Dan quotes below is a big difference. Personally, I like the idea of saving that kind of money. Any chance you can find a 10 year refi at the same rate? Since you're already halfway through your loan now, would it bother you having to now start a new 15 year mortgage all over again? 5.5 to 3.5 is worth looking into.

GOOD LUCK.

Scott Miller, Realty Associates, Boca Raton, FL
0 votes Thank Flag Link Wed Oct 13, 2010
Teresa,
I'm a licensed mortgage lender and Realtor in Washington, but not PA. Not knowing what you originally financed, or what your current payment is, it’s difficult to say. A rough estimate of principle & interest on $73,000 with some closing costs added in would put a new Principle & interest payment around $536 on a new 15 year mortgage at around 3.5% (around 4.169% APR)
You will need to speak to a local Mortgage Lender to find out if you qualify for a similar program or what they might have to offer. You might save some money with a refinance, but your term would start over at 15 years unless you found a shorter one. You could also prepay on the new loan, which generally shortens your term.
0 votes Thank Flag Link Wed Oct 13, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer