Hi im new here and looking for opinions,Thanks in Advance. Im in Florida just in case. Ok here we go,i have a actual mortgage modification for 15 yrs at 2% at the end of the 15 yrs i have a 111,000 balloon payment.
My payment is $1110 a month. I pocket $1800 a month clean into my high yield savins and regular saving acct. Now the ? Is i hit the refinace market and the best so far is 3.5% for 30 yrs with $30,000 cash out. And payments in the $1500s high. My credit score is equifax 800 and the other 2 is 780 to 790. Also i dont have any debts other than mortgage,car,cell,cable,micellenias.
Me and wife was thinking ride at least 13 more yrs at 2% and wait to see what happen and save all we can.
What is your opinion.Thanks
Clearing $1800 a month I can't see much reason from what you suggested of needing the $30K windfall right now which is the only reason I can see for trading 2% for 3.5% even with a somewhat smaller payment for better cash flow (I'm admittedly a fan of cash flow but a 50% higher interest rate? Eek). I am a little surprised with those scores though, figured your interest rate would be lower if you weren't doing the cash out refi at least but I haven't watched the rates in the market in the past few months and with the Fed signalling 3 hikes next year mortgage market may already be moving. You're also going to have to write a check for closing or roll that into your mortgage potentially since you're doing cash out anyway that's another few K right now.
2% is basically free money, even historical inflation is around there and god knows we're well above that now. I'd be wrapping both arms around that 2% and if needed just dump the place before the balloon payment comes due or just write the check. My opinion anyway.
ETA: Even if you needed the 30K I'd just get a HELOC instead personally though the accounting might be a little weird with the balloon payment but have to figure someone would be willing to play ball.
Wow reply was quick and ,Thanks for taking the time to read my post. And sry english no my first language. We thinking in hold that 2%, and the cash out was to bump our savings but no too smart rigth since we will be paying $30000 for 30 new yrs.