Bout to refinance my house. Wheres the mortgage experts?

nickc50310 · #1 (**permalink**) 06-01-07, 04:00 PM

Ok, so I bought my house in 2003. Got a pretty good deal on it. Very nice for the price I paid.

Currently I have a 6.25 FIXED rate. My payment is 600/month with taxes and insurance.

I have made some pretty horible decisions in the past couple years and ran up a couple of my credit cards. Basically I want them paid off NOW!

The value of my house has gone up quite a bit since I bought it. I bought it for 58k and it is now assessed at 70k. I currently owe 56k on it.

I applied on lending tree and have been approved 100% I just need to pull the trigger.

Heres what im offered:

7.40% APR
$676 per month
All fees built into payments I just pay appraisor.
All credit cards paid off plus I end up with about $4500 extra.
This would save me about $90 per month and my cards would be paid off.

Also, they offered me a 30 year mortgage at 7.15% but that has to be paid off or refinanced within 15 years. I doubt Ill still live in the house in 15 years but who knows!

Thoughts everyone?

***Brett*** · #2 (**permalink**) 06-01-07, 04:04 PM

In this rate and guideline enviroment DEMAND that the rate is fixed for 30 years. Accept nothing else.

urbanski · #3 (**permalink**) 06-01-07, 04:07 PM

NO NO NO!!!

is the security of your house worth some CC debt? you have an awesome rate, and you're going to refi for a higher rate?

1. buy this book
http://www.amazon.com/Total-Money-Ma...0727145&sr=8-1
2. leave your mortgage alone.
3. list your income and make a budget!!! cut out anything frivilous.
4. list your debts smallest to largest. put every penny into paying off the smallest (smallest $$ amount, regardless of APR).
5. when that ones gone, roll that money into paying off the next smallest, and so on.
6. have any liquid savings? keep $1000 and cash the rest out to pay off the debt.

never EVER do a debt CON-solidation.
best advice i got

EcSTSatic · #4 (**permalink**) 06-01-07, 04:07 PM

If it were me I'd do anything to avoid messing with the current mortgage. What you have is a pretty sweet deal compared to those that were suckered into ARMs. Besides, what's to guarantee you won't drive your credit cards back up again and end up in the same situation with a higher mortgage?

malcolm · #5 (**permalink**) 06-01-07, 04:10 PM

Where in the world can you buy a house for those prices. Here in Northern NJ a broken down shack is over 300K. My son just bid 399K for a 2 bedroom cape on a 75x100 foot lot. The asking is 419.

nickc50310 · #6 (**permalink**) 06-01-07, 04:11 PM

I mean how much extra is the higher interest rate going to cost me? This is the first offer I got so Im going to shop around. i might be able to get him lower on the interest rate also.

Heres whats going to prevent me from doing that again: A SHREDDER. As soon as this is resolved all my cards are getting shredded.
I know not to touch an ARM with a 10 foot pole. Got that part covered.

Des Moines Iowa baby! Land of cheap homes!

***Brett*** · #7 (**permalink**) 06-01-07, 04:14 PM

the interest rate does not make that much of a difference on such a small loan balance, so moving up that amount won't be that big of a deal. PM me if you want me to do a breakdown. I would need to know card balances, interest rates, closing costs. I have owned a mortgage company for 13 years. I am not licensed in Iowa, so I can give you completely unbiased advice.

urbanski · #8 (**permalink**) 06-01-07, 04:16 PM

Quote:

Originally Posted by Brett

In this rate and guideline enviroment DEMAND that the rate is fixed for 30 years. Accept nothing else.

i only advocate 15yr fixed terms

EcSTSatic · #9 (**permalink**) 06-01-07, 04:17 PM

Quote:

Originally Posted by nickc50310

I mean how much extra is the higher interest rate going to cost me? This is the first offer I got so Im going to shop around. i might be able to get him lower on the interest rate also.

Heres whats going to prevent me from doing that again: A SHREDDER. As soon as this is resolved all my cards are getting shredded.
I know not to touch an ARM with a 10 foot pole. Got that part covered.

Des Moines Iowa baby! Land of cheap homes!

Try one of the online mortgage calculators to see what the difference will be. Think total cost - not just monthly increase.
http://www.mortgage-calc.com/

You say you can do it but the Dark Side is strong my young Jedi. You will be constantly tempted by the credit card companies bombarding your mailbox!

***Brett*** · #10 (**permalink**) 06-01-07, 04:18 PM

15 year terms are great, just not overly practical in most markets. you can always pay extra to your 30 yr

urbanski · #11 (**permalink**) 06-01-07, 04:23 PM

Quote:

Originally Posted by nickc50310

I mean how much extra is the higher interest rate going to cost me? This is the first offer I got so Im going to shop around. i might be able to get him lower on the interest rate also.

Heres whats going to prevent me from doing that again: A SHREDDER. As soon as this is resolved all my cards are getting shredded.
I know not to touch an ARM with a 10 foot pole. Got that part covered.

Des Moines Iowa baby! Land of cheap homes!

cut em up now then work on my post ideas

gdwriter · #12 (**permalink**) 06-01-07, 04:33 PM

Damn, I had no idea Des Moines real estate was so cheap. I paid about $127,000 for my house in 2003, but the good part is it's now probably worth $160,000-$170,000. And I have a 5.625% 30-year loan.

I think Urby's advice makes sense. My ex-wife drove me into bankruptcy, but at least I kept my house, and since I'm still making payments on that, plus paying on part of the debt, my credit may not be completely ruined. But I have no CC debt and plan to keep it that way.

In the past year and a half, I've learned to live within a budget, and I'm pretty anal about it. I track everything and make adjustments as needed. Quicken and an Excel spreadsheet are your friends.

nickc50310 · #13 (**permalink**) 06-01-07, 04:58 PM

Yeah youre right Gary. I really need to be more mindful of my budget. I have a rough budget but I need to make it more precise and not spend so much damn money.

At this rate I would be paying off my credit cards for the next 100000 years. Not to mention it is driving me nuts and I want it off my back.

RightTurn · #14 (**permalink**) 06-01-07, 06:35 PM

Nick--make sure you have all the details before you sign on the line. Does the "new" payment include taxes and insurance? Also, if you have a 100% loan you will likely be required to carry mortgage insurance, which will bump the payment. I believe that typically you have to put 20% down to avoid mortgage insurance but that may vary from state to state.

urbanski · #15 (**permalink**) 06-01-07, 07:09 PM

Quote:

Originally Posted by nickc50310

Yeah youre right Gary. I really need to be more mindful of my budget. I have a rough budget but I need to make it more precise and not spend so much damn money.

At this rate I would be paying off my credit cards for the next 100000 years. Not to mention it is driving me nuts and I want it off my back.

with a determined effort, motivation, and a "Ive had enough" attitude, you CAN pay off the CCs within 1-2 years and not **** up your sweet mortgage.
buy the book, hell i'll buy it for you if you promise to follow it

it has budget forms and a complete "how-to"