Refinance Question

[Anonymous]

We own a townhouse in Fairfax that has been appraised at $389,000. We owe $127,000 on a 30 yr. mortgage at 6.5% and I would like to refinance at a lower rate. We bought the home 12 years ago. We have a pretty good credit score (720). Our current mortgage payment is $1,400.00/month and I would like to lower the monthly payment a bit if possible, but I would also like to pay the home off a little quicker. I do not want any cash out. What would you advise? TIA

[Anonymous]

refi asap. you can get 3.5 today you are pissing money away

[Anonymous]

Refi to 15 years -- don't start the clock all over again!

[Anonymous]

If you refinance with a 15 year mortgage your payment will drop, perhaps significantly, depending on the original loan amount. Don't refi with a 30 unless you absolutely need the cash flow increase - you will pay almost no principle for the first seven years and still owe 120K.

[Anonymous]

You can probably go to a 10 year even - refi immediately - I agree you are pissing cash.

[Anonymous]

Anonymous wrote:We own a townhouse in Fairfax that has been appraised at $389,000. We owe $127,000 on a 30 yr. mortgage at 6.5% and I would like to refinance at a lower rate. We bought the home 12 years ago. We have a pretty good credit score (720). Our current mortgage payment is $1,400.00/month and I would like to lower the monthly payment a bit if possible, but I would also like to pay the home off a little quicker. I do not want any cash out. What would you advise? TIA

LOL WOW. Refi !!!

If you refinance that $127,000 to a 30 year mortgage at 3.5% your new payment is $570.
If you do a 15 year at 2.5% your new payment is $846

If you do the 15 year and keep paying $1,400 a month, you'll have it paid off in June of 2021, roughly 8 years.
If you do the 30 year and keep paying $1,400 a month, you'll have it paid off in September of 2021, also roughly 8 years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We own a townhouse in Fairfax that has been appraised at $389,000. We owe $127,000 on a 30 yr. mortgage at 6.5% and I would like to refinance at a lower rate. We bought the home 12 years ago. We have a pretty good credit score (720). Our current mortgage payment is $1,400.00/month and I would like to lower the monthly payment a bit if possible, but I would also like to pay the home off a little quicker. I do not want any cash out. What would you advise? TIA

LOL WOW. Refi !!!

If you refinance that $127,000 to a 30 year mortgage at 3.5% your new payment is $570.
If you do a 15 year at 2.5% your new payment is $846

If you do the 15 year and keep paying $1,400 a month, you'll have it paid off in June of 2021, roughly 8 years.
If you do the 30 year and keep paying $1,400 a month, you'll have it paid off in September of 2021, also roughly 8 years.

I know, it seems crazy that I have not yet refinanced. I always feel nervous about doing business with a bank etc. I'm not from this country and I always worry that I will fall prey to a loan shark or that someone will take advantage of me, but I guess in a way, they already are at 6.5%.

I feel comfortable with the current mortgage payment of $1411.00, but ideally would like to get the mortgage paid off a little quicker. Thank you to the above PP who made this very clear to me. I have a young son in Kindergarten and I would like to save some more money for his future education.

I will call my credit union on Monday.

[Anonymous]

Definitely refi ASAP!! I would call your credit union and I'm also mentioning the name of a guy I've used for years on my personal property and investment properties.

He is a mortgage broker (25 years) so he represents many different banks. He also hosted a radio show about mortgages and wrote a newspaper column. See how his rates compare to your credit union.

Good luck!

Chris Downey - 703-968-9363. I can't find his email, but if I do, I'll post that as well.