Should I refinance my 30 yr fixed mortgage?
by Mortgage Rates on Thursday, September 23rd, 2010 | 3 Comments
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Go for the 30 year fixed rate. If you pay extra each month, that will reduce the years on the mortgage. You should also request an amortization that will give a break down between interest/principal. On the first 15 years, you pay about 70% in interest. That’s how most banks make their money.
Did you contact them or did they contact you? Do you already have a business relationship with this mortgage company? If they contacted you unsolicited and you don’t already have a relationship with them, run for the hills.
If you prompted it, or they’re your current mortgage company, it might be worth looking into.
How long do you plan on staying in your house? Are there *really* no closing costs? Have you filled out a mortgage app yet? (Be aware that when you do, they’ll likely hit your credit report, so make sure it’s something you are actually interested in doing.)
Once you’ve filled out a mortgage app, they should provide you with a Truth-in-Lending statement, which should detail the costs they’re actually planning on getting. A lot of times, they’ll say that there’s no closing costs, but they’ll actually add a few thousand dollars to your principal balance to pay for the costs, so make sure they’re being straight with you.
Assuming that you’re good with what you see, there’s no reason that a lawyer needs to be involved in the actual closing, in fact, Quicken Loans (and others, I’m sure) does everything by sending a notary to your home. Just make sure you understand absolutely everything they ask you to sign. If you don’t understand it or you don’t agree with it, don’t sign it. No exceptions.
Yes, your 30 year clock would start ticking again. So far, you’ve probably paid almost nothing but interest and you’d start that again. If you actually pay the additional $345 every month, and there’s truly no additional costs, after a year or so, you’ll be well ahead of where you currently are.
The best thing you can do if you decide it might be worth proceeding is to get a full amortization table for both your current loan and the new loan, and see where the break even is. If you’re going to be in the house until then, do it. If not, don’t.
first rule don’t do refinance on the phone .i would take the 15 year only if they agreed to pay off all debts and i would ask for a simple interest bi-weekly.the interest should decrease dramatically why pay a 32 year mortgage when you can pay a 15 year the payments may be a little high but if it gets you out of the mortgage sooner it s good email any questions to me.