Question about refinancing?

[Anonymous]

Last year we remodeled our kitchen and financed it through Green Tree. We hosed ourselves and now have a 25 year loan payment, at 289 a month, equalling 60,000 dollars worth of interest  by the time the loan is paid off. I am not good when it comes to my options, so I was hoping that someone might give advice on other options to refinance and how to go about it.       Thanks to All

[DallasLoanGuy]

why do you want to refi? 

[Anonymous]

I want to refi. because I feel like we will be paying way to much interest for too many years and was hoping someone could help steer me in the right direction for a loan, with less years and better rate (current rate 12.99%) Thanks

[Anonymous]

Do you have equity in your house?  You could refinance and roll the amount on this 25 year loan into your monthly mortgage payment.

That would be your best bet.....

[Anonymous]

Have some equity, but not enough to do it that way. Thanks though!!!

[Anonymous]

Do the terms of your 25 year loan prohibit prepayment?  You could always just pay extra on the loan to pay down the principle faster to reduce the years and interest paid, assuming they will allow you to apply the extra payment to the principle.  Generally the only time you need to refinance is to reduce the monthly payment (either via lowering interest rate or extending the term) or to change the terms of the loan (adjustable to fixed, etc).  If you just want to pay it off sooner most loans have that option without refinancing.

[Anonymous]

That's a possibility, but was hoping there might be another solution out there. Thank you for the response.

[ShanetheMortgageMan]

GreenTree purchased Conseco and does a ton of manufactured home loans.  So, do you own a stick built house or a manufactured home?  If it's a manufactured home, do you own the land under it or are you leasing it?  If it's a lease is it a long term lease or month-to-month, year-to-year, etc.?

[BrianB_The_Loan_Professor]

Interest is interest - Get the lowest rate you can and then pay whatever amount OVER the minimum you can afford comfortably.

I am guessing you owe around 25-30k so stretching it out and paying the minimum will make you pay 2-3 times what you borrowed....almost sounds like a sears credit card

Good Luck

Brian