I am currently looking to refinance with cashout along with getting a lower interest rate which is now 6.125

Asked by Heather, 08755 Sat Nov 3, 2007

for a 30yr. fixed, i have pretty good credit score and always pay bills before or on time,currently living in Toms River,was offered a 5.875 interest on a 30 yr. fixed with cashout option, is this a good move for me or should i keep looking for a better rate? thanks

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Bill Turano, , Select Mortgage 1715 Rte 88 Brick, NJ
Mon Nov 5, 2007
It is not worth doing for the rate alone. So, it depends how much cash are you taking.

Also, you must factor in how many years are left on your present mortgage. For example, if you already had your mortgage 7 years you may not want to start all over with a 30 year loan. It may make sense to take a 20 or 25 year loan or even a 15 year loan.

Finally, if you plan to move within a years, you might consider a slightly higher rate on a home equity loan in order to save the closing costs.

Bill Turano Senior Vice President
Select Mortgage
1715 Rte 88 West
Brick NJ 08724
Web Reference:  http://www.billturano.com
1 vote
Justin Kilis…, Agent, Morristown, NJ
Sun Nov 4, 2007
Just keep in mind that with a refinance, you are getting charged $ most likely in equity of your home - i would weigh the pros and cons of the refinance and how it really is going to benefit you. I think as a rule of thumb you will need to get atleast a 1/2 point decrease for it to be worth the refi -
Web Reference:  http://www.isellroxbury.com
1 vote
Brett Dunne -…, Agent, Upland, CA
Sat Nov 3, 2007

Mansur is so correct. I would also check with local Credit Unions, for they sometimes have great deals and have fixed 2nd home equity loans. And do look at the TOTAL cost of whatever loan you get. Ask for a Good Faith Estimate and hold the Loan officer to it. Finally, get three quotes and compare monthly payments and costs of the loans.
1 vote
Diane Glander, Agent, Spring Lake, NJ
Sun Nov 4, 2007
I have an excellent morgage rep with Wachovia in TR. If you would like his contact info, reach me either through Trulia or my website below. He would look at the information you have and help you decipher it so you could answer the question yourself!
Web Reference:  http://www.dianeglander.com
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