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Refinancing

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Jazzytimes
Valued Member

Refinancing

My mother has a mortgage with chase. She still owes 35000 at a 6.37%. I am trying to help her get a better rate with Penfed or Alliant as ive read lots of good reviews about these two CUs. I also called DCU but the would not finance less than 50,000

Penfed offers 3.0% for 10 years fixed and approximately $2300 closing cost.

Alliant offers 3.75% for 10 years fixed no closing cost.

Would someone advised me which way to go. We prefer not to pay closing cost. Maybe we can get penfed to drop it. I was told i have to apply today to lock the rate. Can we get better rates elsewhere. Thanks for your advices
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1 REPLY 1
DallasLoanGuy
Super Contributor

Re: Refinancing

.75% * $35000 = $262.5(extra interest per yr)

 

2300/262.5 = 8.76yrs

 

so. in 8.76 yrs you will have paid the 2300 thru higher interest

 

i kept this simple

 

if you add the cc to the loan and calculate the loans seperately then the math problem gets way longer

 

bottom line, both deals are VERY similar

 

personally, i would take the no cc option and plop an extra payment in there from time to time and knock out this loan early

 

 

Retired Lender
Message 2 of 2
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