Refinancing my house 216,000 dollars at 6.875%, 30 year fixed rate and my payment will be 1600.isthistoomuch?
Not familiar with today's going rates. I'm currently in a 5yr ARM Interest only. I want a fixed rate, but are fixed rates only for people who plan to live in the house for 30 years. The 216,000 includes all credit cards, and school loans. What should I do?
- 1 decade agoBest Answer
Let me add my two cents even though its appears you have some great answers already. My philosophy is if you plan on moving in five years or less than save some money and get another five year ARM with interest only again. Reason being over a five year period in a full PITI payment (principle interest taxes insurance) you are hardly going to pay anything towards principle anyway. It would make more sense to invest the savings into something that will have a return on your money instead. I deal with alot of people who are doing debt consolidation and I always show them the benefits. Coming from an interest only loan to a full piti loan your payment probably went up around $200 just to do that and then paying off the debt may have brought it up maybe $200 more depending on how much debt was paid off. It's hard for me to sit here and say how much if any benefit other than starting to pay on principle there is without seeing all the numbers. As stated in other answers about $1600 as your new mortgage payment, as long as that included taxes and insurance I do feel its accurate based on 216k @ 6.875%. I hope this helps you but if you need any help or have any other questions please feel free to email me firstname.lastname@example.org.Source(s): Mortgage Consultant with State Financial Services, LLC
- W. ELv 51 decade ago
IF it will help you, manage your money, pay off your debit - than yes it is a good thing to do. Your Fixed rate payment of 1418.97 (principle and interest) will Start 1-2 months from your closing date, plus you are paying off all your other credit cards, and school loans. Your interest at the end of the year will be tax deductable (you will get a 1099 INT from your Lender, that shows how much interest you paid for the year). You will get 2 (1) from the company you currently have a mtg from, and (1) from your new company. At least now you are paying down on your principle, and will eventually build up equity again down the road. It will not happen for awhile, but it will go down, especially if you stay in your home. I bought my home (fixed rate 6.5) in 1992 - did not think I would still be in the same home, but I am- so glad I have the fixed rate. You are the only one that can decided if you are saving any money.....add up your credit cards, student loans, etc.....plus what you are paying on your mtg now - are you saving anything? If not, at least you can take off all the interest on the mtg, where as before you could not take off the credit card interest or student loan interest.
I think you will be happy to be out of the interest only. I am a Mortgage Broker, and I have done many interest only loans - on property this is in a high demand area, and my clients were not going to be in the home more than 3-5 years....So they could turn around and sell the home, make a profit, and have lower payments.....
Go to this website: It will help you figure it out for you.
Good Luck - You will get alot of answers. Pro & Con. BUt, you will make the right choice that in the long run HELPS your situation.Source(s): Wanda Ellis, Branch Manager Charterwest Mortgage, LLC 765-469-1975 cell 765-327-2065 fax/office email@example.com www.mycharterwestmortgage.com
- 1 decade ago
According to my calculations your payment with out escrows (taxes & insurance) your payment should be $1418.97. By doing a cash out reif you can get lower payments and also deduct the interest you pay every year from your taxes. SO as for paying off debt it is a great idea. Now as for the fixed rate. The national average is about 5 years of a family owning a home. SO if you know you will eventually move then fixed rates may not be right for you. You could lower your rate by getting a 10/1 ARM and save yourself more monthly money. it really boils down to what works best for you. I would weigh all options out on the table and comepare them to see which fits your need currently.Source(s): Licensed Mortgage Broker in NC
- How do you think about the answers? You can sign in to vote the answer.
- TheSlayorLv 51 decade ago
I am more concerned with your rolling all your other debt in against your house. Yes, it makes some sense IF it brings your weighted average cost of debt down, BUT you need to change your lifestyle so you can service your debt or you will be in the same situation in a few years again, except the bank will own your house.
- 1 decade ago
No, is not much. I used to have a $140,000. 00's house and my mortgage was $1500,so I think tha you had a pretty good deal.Source(s): none
- Anonymous3 years ago
I often end up asking the same question on other sites
- 3 years ago
This is a very interesting question