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I currently owe $130,000 on my mortgage. I refinanced about 2 1/2 years ago and it cost me over five grand in closing cost through Chase. Chase is now offering me a refinancing deal and which my interest rate currently is 3.65 and I can refinance to a rate of 2.75. According to Chase, there will be no fees whatsoever. I think they might be offering this to me because I’ve been paying down my mortgage a lot and extra payments almost $2000 extra a month on my mortgage.
If I refinance I would have to go from 10 years which is what my years remaining are to a 15 year but once again they are saying no fees whatsoever and I would continue to pay down my mortgage the same way I have. I’m just wondering if anybody has any experience or advice on this. My mortgage payment will go down about $300 so that $300 I guess I would add into the extra payments I’ve been doing per month.
If I keep my original loan which was a 15 year and now about 10 years left and I pay about 2000 extra month I can pay my loan off in about five years. If I refinance it I’ll go back up to 15 but I’m just trying to figure out if I should do this or not
What's your event horizon on this house? If you think you'll live there 10 more years and the closing costs of a refi will pay back in 3 years, it's a no brainer. If you plan to move in 2 years and the closing costs won't pay back for 10 years, it's a no brainer in the other direction. Run the numbers.
The only fees they said they would put at the end of the loan would be the escrow and taxes but they said they will send me a check and I can take that money and then pay that off
Ask the bank to provide two amortization tables then add up how much total you pay that does not go toward principal. That will tell you your loss under each scenario.
But like others mention, if you only plan to stay a few more years it might be a little better with the new deal. Go back to those tables and add everything up for those fewer years. Also see how much principal you will get back when you sell. It will be less on the 15 yr loan.
I currently owe $130,000 on my mortgage. I refinanced about 2 1/2 years ago and it cost me over five grand in closing cost through Chase. Chase is now offering me a refinancing deal and which my interest rate currently is 3.65 and I can refinance to a rate of 2.75. According to Chase, there will be no fees whatsoever. I think they might be offering this to me because I’ve been paying down my mortgage a lot and extra payments almost $2000 extra a month on my mortgage.
If I refinance I would have to go from 10 years which is what my years remaining are to a 15 year but once again they are saying no fees whatsoever and I would continue to pay down my mortgage the same way I have. I’m just wondering if anybody has any experience or advice on this. My mortgage payment will go down about $300 so that $300 I guess I would add into the extra payments I’ve been doing per month.
If I keep my original loan which was a 15 year and now about 10 years left and I pay about 2000 extra month I can pay my loan off in about five years. If I refinance it I’ll go back up to 15 but I’m just trying to figure out if I should do this or not
What will your new monthly payment be for this 15 year loan of $130,000 at 2.75% interest?
According to my rough calculation, your payment for principal and interest under the new loan should be about $886 per month for principal and interest for 15 years. If they're charging you more than that, then there are some hidden fees in there somewhere.
You are correct the new payment would be about 915 but they clearly state there are no fees whatsoever. I think my concern is going from 10 years now that I have left back up to 15 but my goal is to pay it off in about five years. And I do plan to stay in this house probably for another 10 years.
So should I not be focusing on the amount of years being that I’m paying close to $2000 extra month to pay this house off. Should I just be focusing on the principal coming down and not my mom going back up to 15 years?
Such a break it down right now I’m paying 1250 a month and I at on over to grants a month to pay towards the principal. I have 10 years left but if I keep on that pay so I’ll be paid off in like four years. With the new loan it says I will save $300 a month so my payment will go to 950 amount and I still plan on to pay towards the principal I’m just trying to figure out if there’s some thing that I’m not getting in this
You are correct the new payment would be about 915 but they clearly state there are no fees whatsoever. I think my concern is going from 10 years now that I have left back up to 15 but my goal is to pay it off in about five years. And I do plan to stay in this house probably for another 10 years.
News Flash!!! $915/mo is NOT the same as $886/mo. And it's not even close, IMO.
That extra $29 per month figures out to just about an extra $4,300 in financed amount over 15 years. So, it appears that they are sticking you with approximately $4,300 in cost for refinancing this loan. Whether they call it a "fee" or whatever is immaterial. Numbers don't lie.
So should I not be focusing on the amount of years being that I’m paying close to $2000 extra month to pay this house off. Should I just be focusing on the principal coming down and not my mom going back up to 15 years?
Such a break it down right now I’m paying 1250 a month and I at on over to grants a month to pay towards the principal. I have 10 years left but if I keep on that pay so I’ll be paid off in like four years. With the new loan it says I will save $300 a month so my payment will go to 950 amount and I still plan on to pay towards the principal I’m just trying to figure out if there’s some thing that I’m not getting in this
Forget about the extra $2,000 per month that you pay. You can (or SHOULD) be able to do the same thing under the new loan. The only thing to be concerned with right now is whether they are charging you fees of any kind (regardless what they call them) to refinance the loan.
Once again, if they are saying that your monthly payment is more than $886 per month for 15 years for $130,000 then they are adding fees in there somewhere.
The lower interest rate on $130,000 should save you about $1,170 per year (initially) in interest, so it will take you about 4 years of saving $1,170 per year just to break even on these added refinance costs.
You need to question them about why your payment is higher than $886 under the new loan.
EDIT: I just used a payment calculator and came up with a payment of $882.21 for $130,000 at 2.75% for 15 years. So my approximate number of $886 was a little high. So it appears that your monthly payment under the new loan should be about $882/month. Here's a link to that calculator.
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