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I bought my house 14 months ago, he was evicted, and we had a hell of a case. It is estimated that approximately $ 160,000 to $ 165,000 today, and we paid $ 142,000 for it.

Since he was only 14 months, the principal is still about $ 140.300. BUT ... we pay like $ 133 a month for PMI (property mortgage insurance) since we do not have enough equity in the house at that time. We also pay an interest rate of 6.75%. I do not really know how it compares to others ... but I do not think it was all so great.

So ..... I just call around a few different mortgage companies and real intriguing to hear nothing until last Friday. I talked to a guy who said he could lower my mortgage payment of $ 60 per month, lower interest rates to 6.35%, pay the $ 3,000 worth of my student loans (which equivalent to about $ 75 monthly savings), and we get to skip 2 mortgage payments. Break these mortgage payments 2 would then allow me to pay a lease laptop that I have, which would save approximatley $ 90 a month. I would then like around $ 1500-2000 cash left (jumping off the 2nd month of mortgage payment, and obtain the balance of my escrow account pending), and I could not give that or pay off other student loan small . So ... at the end, we could probably knock out nearly $ 300 monthly cost, and have 3-4 fewer invoices sent each month. I like this idea.


He said all this, and I was pretty excited ...... Until I saw that our new loan amount is $ 152,000 .... It is still assessing what the house but I just hate to see a little jump over $ 150,000 ...

I do not know how long we'll be in this house, but I would say at least 5 years older, but who knows, we could be there for another 25. We have not really thought about it.


Can someone give some advice on this? I hear another opinion.




PS-It would refinance a 30 year fixed for another 30-year fixed rate. And I am 25 years old. Just throwing that out there.

What you have been offered is a very, very bad deal.

The lender is using your mortgage as a loan to consolidate debt. You make all sorts of small and moderate debt - those who will be paid soon - and put them in a 30-year mortgage. Your laptop, for example, will be valued at zero in a few years (hell, it's a lease, not a purchase), but they roll the debt into a loan that spans 30 years. Very bad idea.

You want to learn to "jump" two payments. I'm sure these payments are wrapped in the mortgage, too. So you save perhaps $ 2,000 to skip two payments ... but you end up owing $ 2,000 in principle and probably around $ 4,000 in interest. Very bad idea.

As someone else noted, if your interest rate on student loans is less than 6.35%, you'd be willing to trade low for a loan at higher rate. And, again, for 30 years.

Also, take a look at the APR on the new mortgage. I bet it is much higher than 6.35%. (It is normal for the APR to be slightly higher than the rate of the state, how much more the question.) I guess there are a few thousand dollars in junk fees thrown in there.

Also, how is it to get rid of PMI? You are an estimate of your home can be assessed for $ 160,000. (Get a Realtor to do a CMA on the property.) You'd have $ 152,000. It is a loan of 95%. Maybe he did what was done a few years ago - by 80% without PMI and 15% with PMI. You would have almost no equity, as you already know. And if property values decline? You'd be upside down - owing more than the property is worth. Even these figures, $ 160,000 value, $ 152,000 must.