Baby Corner


 
Old 04-22-09, 04:20 PM
koala_kaper's Avatar
is a Mommy of 4!
~Christina~
 
Join Date: Sep 2006
Location: La Crosse, WI
Posts: 5,714
Thanked 219 Times
Points: 2
Level: 1
Weekly Activity 8.57%
Question What makes it a good idea?

The other post got me thinking, what is it that makes it worth it to refinance?

Dh and I are kind of at a loss for what to do... Not QUITE as much now bc he's working more hours again, but I'm still curious...

Here's the deal with us... We don't WANT to live in this house for very long. We are even thinking of doing any minor fix-ups that we can and trying to sell next fall (I think that's what we talked about, if I remember correctly.) BUT I don't know if that will ACTUALLY happen or not.
Our interest rate is 7%.

ALSO dh has talked about wanting to buy his Grandpa's house (he passed away... I think I could get over it, but in my opinion it would be kinda creepy living there at first...) It will probably just get put up for sale anyway eventually after they finish going through everything. The other thing is, it's actually 2 lots bc the house next door burned down so Grandpa and one of his sons bought that lot. The son (dh's Uncle) bought Grandpa out, so now he owns that lot (which actually looks like one big lot instead of two separate ones... not sure how they'd go about dealing with that when they sell it anyway.) We were thinking about MAYBE talking to the family to see if we could make payments w/out getting the bank involved, again I'm not sure how it would all work or if they'd be willing to do any of that anyway.

SO with all that in mind... what is your opinion on the whole thing?

*Sorry, that got a lot longer and more complicated than I thought it would!
Reply With Quote
 
Old 04-22-09, 08:58 PM
Janine's Avatar
is in love with the new man in her life!
VIP Member
 
Join Date: Jul 2001
Location: Broken Arrow, Oklahoma
Posts: 7,949
Thanked 179 Times
Points: 1
Level: 1
Weekly Activity 1.43%
Default

Compared to current rates, your interest is pretty high. When I was a Realtor eons ago...the rule of thumb was that if you can drop your interest rate by 2 points it was worth refinancing. So it might be a really good idea in your case, especially if you could afford to refinance at a 20 or 15 year mortgage instead of a 30 year. If you have a lot of equity in your home, the new mortgage would be for a lesser amount and that could help drasticaly reduce your payments too.
Reply With Quote
Thank you Janine!
koala_kaper (04-23-09)
 
Old 04-22-09, 11:11 PM
Dopey406's Avatar
is loving her husband and children!
Administrator
 
Join Date: Oct 2003
Location: Ohio
Posts: 24,935
Thanked 1,189 Times
Points: 882
Level: 10
Weekly Activity 6147.86%
Default

You'd have to look into what the closing costs are for the refinance. If you're not going to save at least that much in mortgage payments during the remainder of the time you live in the house, then it's not worth it. You'll be putting out more than you're saving.

But if you can find a good closing costs deal (ours were only $299 + cost of appraisal, so close to $500), it would be worth it because 7% is high. We went from 6.75% to 4.5%.
Reply With Quote
Thank you Dopey406!
koala_kaper (04-23-09)
Latest Articles
Pregnant Woman's Guide to The Zika Virus
Get the latest information about the zika virus during pregnancy including how to protect your unborn baby or infant, signs and symptoms, complications, and prevention.

Fetal Development Video
Video showing how a fetus developed during the 40 weeks of pregnancy. Fetal Development Video

Adventure Vacations with Your New Family Are Possible
If you spent time as a couple exploring vast areas of the world, that doesn't have to end just because you have a new baby. Here are 6 tips to make your vacations fun for the whole family. Plus, vacation ideas to help you get started.

The "Mozart" Effect: How Music Helps Your Baby's Development
Can your baby really be smarter if your listen to Mozart, or other classical music, during pregnancy?

What to Expect Postpartum: Your Period
The postpartum period brings many changes to a woman's body. Learn what to expect with your period including when it will return and warning signs to watch out for.

May 2017 Baby Photo Contest Winner
May 2017 Baby Photo Contest Winner
"Kiara"
Congratulations jaydipdave!

Calculators & Tools

All times are GMT -4. The time now is 01:47 PM.


Pregnancy | Fertility | Baby | Toddler | Free Baby Stuff! | Community | Baby Names

About Baby Corner | Advertising | Editorial | Contact Baby Corner | Terms of Use | Privacy Notice


Powered by vBulletin® Copyright © 2017, vBulletin Solutions, Inc.