Refinancing my home

Anonymous · ‎10-28-2009

I want to refinance my home from 30 years to 15 years and make extra payments each month. My fico score sucks....mine is 670 and my husband's 630. I was late in my mortgage payment once and it was on in 2005....which bank I should go with....Wells Fargo is may lender but they want me to pay 8,000 dollars and raise my interest from 5.00 (actual) to 5.5 and next month my variable interest will go down for a year to 3.9.

My loan is for 110,000

value of my home:145,0000

I bought it for 155,0000

Message Edited by jessy on 10-28-2009 08:07 PM

Anonymous · ‎10-28-2009

8K seems high (but I am not sure) for a refi. But, all you really have to do is pay extra on the loan each month and throw an extra payment at them every once in awhile toa cheive the same thing. I would not refi until the new rate would be lower than your current one. Plus, on a 100K loan, it would seem to make alot more sense to just put the 8K towards the balance of the loan and get the principle paid down.

Anonymous · ‎10-28-2009

@Anonymous wrote:
I want to refinance my home from 30 years to 15 years and make extra payments each month. My fico score sucks....mine is 670 and my husband's 630. I was late in my mortgage payment once and it was on in 2005....which bank I should go with....Wells Fargo is may lender but they want me to pay 8,000 dollars and raise my interest from 5.00 (actual) to 5.5 and next month my variable interest will go down for a year to 3.9.

My loan is for 110,000
value of my home:145,0000
I bought it for 155,0000
Message Edited by jessy on 10-28-2009 08:07 PM
Message Edited by jessy on 10-28-2009 08:07 PM

Jessy, Don't do it! You'll get absolutely nothing for your 8K. If your goal is to pay it off in 15 years instead of 30, just double up or pay extra on your regular payment designating the extra to go to principal. You'll save a bundle on interest and IF, for some (unforseen) reason you cannot pay more than the regular payment, you're still within contract. What's the cap on your variable? The best rates yesterday for a 15 yr fixed were 4.48, meaning you'd have to have pristine CR's and scores in order to qualify. I don't know what damage the 4 yr old late mtg pmt is doing, but the 670 / 630 won't qualify for "best" rates.

Don't get mad, get even! Pay 'em off early and save that bundle on interest.

D-R

Anonymous · ‎10-29-2009

Thank you for your advice.....my rate will change this month from 5.5 to 3.9 or a little less. I have received a letter from my bank not to long ago (maybe two months ago)with that notice. I will make extra payment because to pay 80000 dollars it is too much. I will put that to my principal and reduce my debt.

Thanks