Need help deciding whether to refinance

[saucey]

Hi everyone! I havent't posted in a long time,but I have been checking the boards every once in awhile. It's good to see alot of the same people are still around. Anyway,I need a little advice on whether to refinance or not.

Right now my husband and myself have a first and second mortgage.The first is 6.5% and the second is 11%.The house is worth about 210,000. We owe 101,000 on the first and 66,000 on the second with about 22 years to go on both. Quicken loans is offering a 30 year fixed at 6.75% combining both loans for a total of 174,000. It kills me to think about starting over with 30 years again,but the 11% is outrageous.we would save almost 500 a month if we do this. Any advice would be so appreciated.

[Logan]

Saucey,

You are only starting your 30 years over if you decide to make the minimum payment. What if you took that $500 savings and applied it to your mortgage?

AT 174,000 your mortgage payment would be $1100. If you took the savings of $500 to make extra payments your mortgage would be paid off in 14 years.

Bottom line--You are saving money and whether it takes you 30 years, 20 years or 14 years to pay off your mtg is up to you.

Logan

[saucey]

Thanks Logan, I appreciate the advice but do you think this sounds like a good deal? I dont want to make another mistake.

[Logan]

Sounds like a no brainer to me but it does depend on the closing costs. What's the APR? APR is the actual rate you will be paying based factoring in closing costs.

Logan

[MTG_BANKER_OH]

Hi everyone! I havent't posted in a long time,but I have been checking the boards every once in awhile. It's good to see alot of the same people are still around. Anyway,I need a little advice on whether to refinance or not.

Right now my husband and myself have a first and second mortgage.The first is 6.5% and the second is 11%.The house is worth about 210,000. We owe 101,000 on the first and 66,000 on the second with about 22 years to go on both. Quicken loans is offering a 30 year fixed at 6.75% combining both loans for a total of 174,000. It kills me to think about starting over with 30 years again,but the 11% is outrageous.we would save almost 500 a month if we do this. Any advice would be so appreciated.

This may be too late but you should get a much better rate then 6.75%. You should be looking more closer to 6%. something does not seem right though the ssavings seem too high for the interest rate savings.


your principal and interest payments are roughly $1266 per month not counting taxes and insurance. with the proposed interest rate you are only looking at a payment around $1100 witn interest rate of 6.75%.

They may have left off the taxes and insurance on your loan.

You also may want to consider refinancing the second if your credit scores a re decent.

That is only a savings of around $160 per month

It looks like your closing costs are roughly 7k that also seems high depending on your state though it could be right.

I would keep shopping.