(Closed) Refinancing question

posted 4 years ago in Home
Post # 2
7339 posts
Busy Beekeeper
  • Wedding: October 2014

Calculate the refinance cost and the cost of going back to Year 1 on your mortgage (even if it’s not a 30-year note, the first 5-8 years of alost any mortgage are purely interest and you won’t see the principal go down substantially till after that) and compare to the money you’d save on monthly payments for the 1-2 years till you plan to sell.

So if it is $4000 in closing costs (often buried back into the loan) and adds $8000 to your total amount to payoff (or reduces the ratio of accured equity by $8000) then your payments would need to go down by more that $500/month for it to be a break-even deal for you with a 2-year sell date. Sell sooner and you lose money on the deal, sell later and you save more money.

Post # 3
36 posts

I’m in the mortgage industry.  Do you know if your condo development is approved on Fannie Mae’s list?  If not, the rates will be higher as you’ll need to go through a portfolio lender for financing.  

The topic ‘Refinancing question’ is closed to new replies.

Find Amazing Vendors