Question by 0Andrius K0: second mortgage refi or consolidate 1st and 2nd (UPDATE)?
MORTAGE RATES ARE DOWN SO I AM THINKING TO REFINANCE:
we have 2 mortgages –
1st – @ 6.375% remaining 201,000 for 355 mnths no mortgage insurance – total monthly pmnt 1272.70$ + 410.2$ to the escrow account.
2nd – @ 10.75% remaining 36,000 for 225 mnths – monthly pmnt 386.8$
we plan to stay in this house for 30 years
when we bought the house was appraised @ 250k
now – 300k
our income bracket is 31%
credit score 740.
my question is should we combine these 2 @ 6.625 for 30 yrs with closing costs being apprx 2500.?
HOW ABOUT CONSOLIDATE @ 6.25% FOR 30 YRS + CLOSING COSTS 2500?
also i was given an option to refi just the 2nd one @ 8.5% for 20 yrs with closing costs apprx 250
THERE WOULD BE NO MORTAGE INSURANCE PMNTS AND WE ACN AFFORD THE MORTGAGES EASILY – JUST LOOKING TO GET A BETTER DEAL.
PLEASE EXPLAIN YOUR ANSWERS WITH SOME MATH IF POSSIBLE
any advice would be greatly appreciated
Best answer:
Answer by CreditAlignment.com
who is quoting you 6.625%? that is HIGH.
i’m sure if you shopped around you will get 6.25%, and your decision WILL BE TO refinance with 1 mortgage at 6.25%.
from your other question it looks like you will be under 80% LTV…so you wont have any PMI payments
What do you think? Answer below!
Maybe we should send you a bill for the finacial advice.
It sounds like consolidating at 6.25 for 30 years will be the best deal to me – lowest interest rate, your consolidating both loans without PMI, right? Sounds like a good way to go.
I might suggest ignoring the term of the loan and telling the bank you want to make your monthly payment the same as it currently is. It seems like you’d be cutting your rate on both loans with a rate of 6.25, right? so paying the same amount monthly may allow you to pay your entire mortgage off in fewer years. That seems like the best route to me!
Definitely consolidate the two. With the home being appraised at 300k, and your new mortgage at 237k-240k, depending on if you roll your closing costs in, you’ll be under 80% loan to value (have 20% equity) and won’t need to pay the pmi.
You’ll save a great deal of money and gain piece of mind knowing that you only have one payment to make on a monthly basis. If you’re in FL, check out our website at http://www.achievablemortgages.com and give us a call for a quote if you’d like.
Good luck.