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Refinance Opinions

AlexisD
New Visitor

Refinance Opinions

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

 

 

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2 REPLIES 2
Revelate
Moderator Emeritus

Re: Refinance Opinions

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.




        
Message 2 of 3
AlexisD
New Visitor

Re: Refinance Opinions

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.

Thanks 

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