Sunday, 15. August 2010
My home has a 7k loan on it My current payment with taxes, insurance, and PMI is 25. rate @ 6.75%
Goal is to remove PMI (been 6 years)
1st option: 6.125% 30yr fixed 60; 25-1260= 5 savings per mo.
K in closing costs 00/5=30 months to cover the closing costs
2nd option:
6.25% 30yr fixed; first 10 yrs is an int only loan.
10 for the first 10 yrs
3rd option: 5yr ARM 5.75%, int only for 5 yrs. Payment to be 39; I would refi in 5 yrs in this case
Savings in 5 yrs between 2nd and 3rd options: (10-39) x 5 yrs = 60
I plan to own the home for the next 10 yrs and plan to start renting it out at the end of the year. The broker made a good point about the int only loan in my case: The home is worth 5-310k – said there is enough equity that I don’t need to chip in on lowering the loan amount for safety in case the housing market dropped. Does paying on the principal for 2K to 3K per year seem that necessary in comparison with equity?
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Saturday, 7. August 2010
I have a home equity loan with an interest rate of 7.49% (fixed). The monthly payment is 9.78. Of that 0.29 goes to interest, 3.13 goes towards the principal, and .36 goes to insurance. My question is: Is the interest they’re charging me every month correct. Sure seems like alot to me, but I’m no money man. The people at the bank don’t seem to be able to explain it to me so I figured I’d ask the question here. Second question: I know interest rates are falling. Would it be wise to refinance this loan at a lower rate? Is now a good time or are rates going to drop more. Or should I just leave it as it is. Thanks alot for any help.
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Friday, 6. August 2010
I just asked this question and got several replies, but forgot to say how much the loan was for. Several of the respondents said they couldn’t answer the question without knowing the amount of the loan. So, It was for around ,000, and the balance is around ,500. So here is the original question:
I have a home equity loan with an interest rate of 7.49% (fixed). The monthly payment is 9.78. Of that 0.29 goes to interest, 3.13 goes towards the principal, and .36 goes to insurance. My question is: Is the interest they’re charging me every month correct. Sure seems like alot to me, but I’m no money man. The people at the bank don’t seem to be able to explain it to me so I figured I’d ask the question here. Second question: I know interest rates are falling. Would it be wise to refinance this loan at a lower rate? Is now a good time or are rates going to drop more. Or should I just leave it as it is. Thanks alot for any help.
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Thursday, 5. August 2010
We found a 30-yr APR loan w/ interest-only w/ a fixed rate of 4% for first 5 yrs
This sounds appealling to us because that way for a 0k loan, the monthly payment for the 1st 5 yrs would be ~,350 +tax+insurance=~,000 VS when we tried to get a 30-yr fixed traditional for ~0k the payments were ~,200 [incl tax+ins].
W/ this IO loan, we can afford more house for the same monthly payment, and that’s good because less than 0k in San Diego doesn’t get you much of a house.
So, my question is, if we stick w/ the fixed IO loan AND assuming the house gains some equity in those initial 5 yrs; when we refinance or sell the house, what happens to that equity? Does the bank keep it because we haven’t really been paying the capital just interest? Or do we get it? Can we use that to lower the payments when/if we refinance?
Our main goal is 2keep monthly paments as low and as fixed as poss, even if in long run we pay more. We dont plan 2 b ther 4 mor than 5 yrs, n if we do we’d refin
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Tuesday, 3. August 2010
I need K for a surgery that will be performed on myself this year. I am a private real estate investor so my pay fluctuates, however, I seem to do just fine. I just purchased a newer but used Honda Accord 3 months ago, put K Down, and owe about K more, and I own 2 homes, appraised at 5K A piece, and on each I have two hard money loans in the amount of K per property. The rest is just equity. I have both homes for sale, however, the market is dead. My credit is about 625, however I could easily improve it
This is my situation. Would my assets help me to get a loan? I dont necessarily want to BORROW more on them… I am just wondering… what kind of a part it would play in getting myself a loan. Thanks : )
PS: My Health Insurance wont cover a thing. Thanks : ]
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Sunday, 25. July 2010
My home has appreciated significantly, and I’m looking to pay off my current adjustable rate mortgage and get a fixed rate loan at a lower interest rate, as well as extra money to fix it up and pay off my car loan and other bills. Also, do either cover property taxes and insurance, or will I have to pay them out of pocket? I just want to know the basics before going to the bank so I don’t feel confused or overwhelmed. Thanks!
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Tuesday, 6. July 2010
We bought a house last year with two mortgages. Because we only put down 10% for the loan, having the second mortgage of 10% of the loan, this way we don’t have to pay for the insurance. This second mortgage has an interest rate of 9.75% while our other mortgage is at 6%. We want to refinance this second mortgage to a lower rate. Can we do that? Is there anything that preventing us from refinance just this second mortgage? There is no early payment (repayment) penalty on both of our mortgages. Thank you very much for your help.
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Tuesday, 29. June 2010
I need K for a surgery that will be performed on myself this year. I am a private real estate investor so my pay fluctuates, however, I seem to do just fine. I just purchased a newer but used Honda Accord 3 months ago, put K Down, and owe about K more, and I own 2 homes, appraised at 5K A piece, and on each I have two hard money loans in the amount of K per property. The rest is just equity. I have both homes for sale, however, the market is dead. My credit is about 625, however I could easily improve it
This is my situation. Would my assets help me to get a loan? I dont necessarily want to BORROW more on them… I am just wondering… what kind of a part it would play in getting myself a loan. Thanks : )
PS: My Health Insurance wont cover a thing. Thanks : ]
Interesting Blogs