Financing in Barnstead>Question Details

Rose, Renter in East Somerville, Som...

is it worth refinancing to consolidate my loans if my current loan interest rate is 5.25 (bal of loan approx $135,000) and my home equity is approx

Asked by Rose, East Somerville, Somerville, MA Wed Oct 27, 2010

3% on a balance of approx 18,000.

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Rose you should meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there what programs that you may quailify for, what your closing costs will be and what savings yiou may see from a refinance so you can compare and see if it is worth it..
1 vote Thank Flag Link Mon Nov 1, 2010
Thank you all for your comments. Seems it is not worth it. The closing cost are ridiculously high and I've had the house on the market. Still hopeful it will sell. So thank you for all your comments.
0 votes Thank Flag Link Mon Nov 1, 2010
Hi, Rose

Unless you're correcting an escrow shortgage, if you're not saving at least 100.00 a month and will not recoup your closing costs within 3 yrs times, it may not make sense for you to refi. Speak to a mortgage lender of your choice to help you determine that.
0 votes Thank Flag Link Mon Nov 1, 2010
Rose, the key factor is "how long will it take to get back my "cost" in closing costs?" If you plan on staying there refinancing would be a good idea. If you can go from 5.25 to 4.25 on your first mortgage that will save you a lot of money over time. And even with a 3% second your payment will likely go down. The reason is that your second is such a low percentage at 3%. As the others have said, talk to a professional. But if you have equity if might be a good idea to look into it.
0 votes Thank Flag Link Mon Nov 1, 2010
It may not be. The best way to find out is to call a reputable Mortgage officer and ask them explain the product they have available and the costs associated. They can compare what you currently have with what is a available to see if there is any real savings to you.
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0 votes Thank Flag Link Wed Oct 27, 2010
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