Should I refinance or just pay off the house?
clf224 asked:
What are the pros and cons of refinancing? I recently inherited a house and am almost done paying the mortgage. Should I refinance (and if so, do what with the money?) or just pay the house off? Please advise.
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What are the pros and cons of refinancing? I recently inherited a house and am almost done paying the mortgage. Should I refinance (and if so, do what with the money?) or just pay the house off? Please advise.
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February 25th, 2009 at 4:35 am
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Consult a tax accountant.
February 26th, 2009 at 12:58 am
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pay off then if you need money the papers in your name or you may want to sell get a reapraisal and see what is what a sell may be more money and less hastle later also pay alittle and get a properly trained ex builder to do a complete inspection it may send this little piggy to the market
February 27th, 2009 at 10:21 am
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Less interest is more money in your pocket. If you can pay off your house, then by all means, do so. The only reason I can see for you to refinance is if you need to have all that extra money in the bank to make other types of payments or have other large expenses.
Should you decide to refinance, be careful. There are a lot of ways that they “get” you. You can refinance to a lower payment term per month but have your 10 year mortgage at 1500 turn into a 20 year mortgage at 1100 a month or the like. This suckers a lot of people in, but do the math and see how paying less a month will cost you more in the long run. Anyway, good luck!
February 28th, 2009 at 2:57 am
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It depends on your situation, but refinancing is a good alternative for many people with other outstanding debt. Interest on a mortgage loan is tax deductible- interest on everything else is not. So if you have outstanding debt, like credit cards, car payments, etc. you might be better of getting the cash out of the house and paying off those other things. At least then you get the tax deduction for the interest you are paying anyways.
Also, if you are planning on keeping the home- what good is the equity doing you? You get nothing for your equity until you sell the home. Why not use the equity in the mean time, get the tax advantage, and save money on your monthly budget as well.
March 1st, 2009 at 9:32 am
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It depends….. what are your future goals ….. If you can budget the monthly payment and “invest” the money from the refinance then by all means do so…. Even if you are paying 6% on a mortgage loan and investment the money at just 6% you are not only taking advantage of compounding interest, but you are also taking advantage of the interest tax write off….. consult with a Loan Consultant that you feel comfortable with and don’t be afraid to ask them to provide you with a detailed report of what that loan is going to cost you over the life of the loan…. You many want to get your financial planner involved as well….