What is the best refinance plan to reduce my monthly mortgage payments?
Awesome O asked:
I’m looking for the best plan as in:
I’m looking for the best plan as in:
- Not getting my face ripped off in closing cost
- Not increasing my current interest rate of 5.8 to something over 8%
- Not having to pay thousands in points
It seems I’m having the same dilemna as when I bought my house and rates were supposedly “low” 4 years ago. I know I can’t win, but I simply can’t afford my current mortgage payment of $1500+ a month on a house I mortgage $185K for.
Todd
Tags: Current Interest Rate, Dilemna, Face
May 27th, 2009 at 1:37 am
Roy
couple options:
-get a roommate that will pay
-get an international homestay student
-rent out a portion of the basement for income
May 30th, 2009 at 12:56 am
Brad
5.8 is a good interest rate and i do not think in these times you can do better, sounds more like the taxes are the thing that is killing you. With the depreciation of houses maybe you can get the home reassessed and change your taxes on it. cannot think of any other way to reduce payments
June 1st, 2009 at 11:11 pm
Bernice
Since 5.8 is a pretty fair deal, you will need to go to an interest only loan. They have loans that are fixed low interest loans that allow interest only payments for the first ten years. Current interest rates on these loans is around 6.75 %. This will lower your payments down to just over 1000 a month.
The best bet for you is to find a good mortgage broker and ask them what they charge. After all the fees you will spend around three points. You can ask to spend less on the points, but they will have to raise your interest rate and thus your payment to do so.
June 4th, 2009 at 5:28 am
Carolyn
Sounds like you may have $300 to $400 per month is PMI and tax impounds/escrows — like stated above
Be sure you are receiving all exemptions on taxes that you are entitled to & don’t be shy about filing for an appeal.
Otherwise it sounds like you have a great mortgage already and should look for ways to increase your income or compromise and get a solid roommie - even if only temporary it may allow you to pay down other debts so you can comfortably allocate more of your earnings to the mortgage each month.
Otherwise sell and start over.
Good luck.
June 5th, 2009 at 10:07 pm
Leonard
If you are paying PMI and you are if you paid less than 20% down. If your home has increased in value by 20%. You can get a current appraisal to support the value increase. The lender has to remove the PMI and your payment should drop by $100-300 per month
June 8th, 2009 at 6:12 am
Yvonne
I wouldn’t suggest an interest only loan because when you least expect it, you get it with a balloon payment and that is not what you want. Why go into foreclosure when you don’t have to.
Your interest rate will surely increase but to what is anybody’s guess at the moment. You can’t get away with not having points but it may only be as little as 3 points.
For the moment your best bet I would say is to stay put and figure out how much better off you may be after all.