I have a 241K left of a 243K mortgage from when I purchaced my home 9 months ago. I just met someone who is interested in refinancing my loan. It will reduce our payments by 115.00/month and give us 2000 cash back. the reduction comes mainly from the elimination of PMI. The new loan amount will be 249K which includes closing costs and escrowed taxes. The rate is going from 6.5% to 6.37%. Someone please tell me if this is a excellent thought?
there will be fees even if you dont pay them out of pocket and your not saving that much in interest! 1/4% basically
you can get a better rate than that i would advise looking at a few others see if you can find a lower rate
A touch is ‘missing’ here. What is it? To get rid of PMI you will need TWO loans – a first at a low rate (the 6.37%) and a following at a much higher rate.
Overall, this is a very BAD thought. You are going further into debt with NO equity in your house. Don’t do it!
Best wishes and good luck.
p.s. ‘you just met someone’? Your ‘crap detectors’ should be flashing bright red!
if your payment is $115.00 and you pay $130.00 that $15.00 is positive to the balance plus it will keep your interest will stay low. but if you ever forget a payment or lose youe job or just get sick and lose. The company will keep your account It does help but it come out of your bank account on different times each month and you force not have all the money there yet. no to escrow