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[quote=Robert20170;58729924]We are in the process of refinancing our 30 year VA loan with a 2.5% IR. No points other than the standard IRRRL .5% funding fee.[/QUOTE
That is a good rate with no points. Who is your lender?
Supposedly over 15 million people could refinance, dropping an average of $300/month in their monthly nut.
Be very careful of apples-to-oranges comparisons.
I have a 15-year mortgage at 3.0% and just got an offer yesterday to refinance at 2.5%. I borrowed $100K and 5 years later I owe about $70,000. They're offering me $100K at 2.5% and the payment is a bit lower than my current payment- but now instead of being paid off in 10 years the clock is re-starting at 15 years.
Many of these great offers have lower payments not just because the interest rate decreased but also because you're borrowing less (having already paid off some principal) and the "finish line" has been extended.
Heck. I got one offer with cash out and a lower payment but a HIGHER interest rate. It was a 30-year mortgage instead of 15 years.
I have a 15-year mortgage at 3.0% and just got an offer yesterday to refinance at 2.5%. I borrowed $100K and 5 years later I owe about $70,000. They're offering me $100K at 2.5% and the payment is a bit lower than my current payment- but now instead of being paid off in 10 years the clock is re-starting at 15 years.
Many of these great offers have lower payments not just because the interest rate decreased but also because you're borrowing less (having already paid off some principal) and the "finish line" has been extended.
Heck. I got one offer with cash out and a lower payment but a HIGHER interest rate. It was a 30-year mortgage instead of 15 years.
yep ... can you imagine having only 5 years left with a small balance and little interest , only to refinance to a new 15 year and start the clock all over ?
so what is left on the mortgage certainly matters .
yep ... can you imagine having only 5 years left with a small balance and little interest , only to refinance to a new 15 year and start the clock all over ?
so what is left on the mortgage certainly matters .
If you were in a cash flow crunch due to the current economic situation, which plenty are, I think this would provide needed short term flexibility. You can always reassume your higher payment later, making the term whatever you want it to be, once your employment situation was more clear. This is a far better solution than digging into securities or savings.
If you were in a cash flow crunch due to the current economic situation, which plenty are, I think this would provide needed short term flexibility. You can always reassume your higher payment later, making the term whatever you want it to be, once your employment situation was more clear. This is a far better solution than digging into securities or savings.
Just make sure there is no pre payment penalty.
If you are in a cash crunch refinancing may not be an option
I have a 15-year mortgage at 3.0% and just got an offer yesterday to refinance at 2.5%. I borrowed $100K and 5 years later I owe about $70,000. They're offering me $100K at 2.5% and the payment is a bit lower than my current payment- but now instead of being paid off in 10 years the clock is re-starting at 15 years.
Many of these great offers have lower payments not just because the interest rate decreased but also because you're borrowing less (having already paid off some principal) and the "finish line" has been extended.
Heck. I got one offer with cash out and a lower payment but a HIGHER interest rate. It was a 30-year mortgage instead of 15 years.
Not worth doing it unless you plan on keep more cash for long. With your loan balance it makes more sense paying it off earlier.
Everytime refi you have to eat the refi costs and it further delays your loan repayment. I am paying an extra $300 a month on my mortage just to speed up the payoff as well as doing bi-monthly payment.
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