Refinance.....Again? - We bought our house in 2007, $160K purchase price (Appraised at $160K), put $10K down (Original loan was $151K), 5.75% 30 year fixed loan. We refinanced in 2009, $140K was the balance on the loan and the house was appraised at $164K, 4.80%, 20 year loan. We paid the closing costs for the refinance out of our savings account. Now it has only been a year since we refinanced and interest has gone down a lot again and we are thinking of refinancing again. Looking at my banks website it looks like we could get a 15 year loan at 3.75%, so we would be going down another full point in interest which is huge. Our loan balance is currently at $131,850.00. We could easily afford the slightly higher payment since we are already paying extra every month and with the drop in interest the actual amount of the payment would not change very much. The only part I am struggling with is the $4K - $5K we would have to pay in fees. We only have about $7K in savings right now, so we would not want to take that money out of savings. We would need to add the closing costs to the loan or possible borrow the money from my Mom, I know she would be cool with giving us a 0% loan for a year or 2 if that is what we really wanted to do. Hmmmm....any thoughts or suggestions????
July 13th, 2010 at 09:06 pm