naturally Posted March 28, 2013 Share Posted March 28, 2013 Debating on refinancing the house. Rolling in closing costs could add a couple thousand to what we owe. But refinancing could save us almost $100 every month. Our dream is to sell the house one day but only God knows when that would be. We'd love it to be in the next year or two but......... What would you do? Quote Link to comment Share on other sites More sharing options...
speedmom4 Posted March 28, 2013 Share Posted March 28, 2013 If you are going to sell a house within a couple of years it probably does not justify the closing costs. There are calculators that can help you decide whether or not it's a good financial decision. Elise in NC Quote Link to comment Share on other sites More sharing options...
Scarlett Posted March 28, 2013 Share Posted March 28, 2013 I would not re fi to save 100 a month. Unless it also shortened your term significantly...like going from 27 remaining years to 15 years. Quote Link to comment Share on other sites More sharing options...
naturally Posted March 28, 2013 Author Share Posted March 28, 2013 That's what I'm thinking but the $100/month would allow us to not live so paycheck-to-paycheck and would give us money to save and do little repairs - paint, faucets, etc. But, I don't want the higher balance since we're already upside-down. Ugh. I hate decisions like this. Quote Link to comment Share on other sites More sharing options...
HappyLady Posted March 28, 2013 Share Posted March 28, 2013 We recently financed. We had 24 years left on our loan. Now we have 15 (or if we continue to sent more towards the principal it will be 13). It did cost us a couple thousand to close, but somehow we ended up with a refund of pretty much the same amount! Our loan payment is now $60 less per month and we also don't have the monthly PMI fee. I'm so glad we did it. Quote Link to comment Share on other sites More sharing options...
TravelingChris Posted March 28, 2013 Share Posted March 28, 2013 There are calculators that help you decide how long you would need to be living there for it to make sense. We did it last fall, even though we had bought the house the previous July. The rates had still fallen enough for it to make sense for us. For us, the time we needed to stay in the house was only two more years to break even and we thought we would do that since we actually hope to stay here for years. Quote Link to comment Share on other sites More sharing options...
Trilliums Posted March 28, 2013 Share Posted March 28, 2013 What would you do? I would go to a low pressure mortgage officer, perhaps at a local credit union. They should be able to go though all the numbers with you and show you exactly when you would break even with closing costs. Avoid anyone who pressures you to decide that day!!! If you are already upside down, can you even get a refi? Quote Link to comment Share on other sites More sharing options...
naturally Posted March 28, 2013 Author Share Posted March 28, 2013 We're actually looking at doing an IRRL for VA loan. Quote Link to comment Share on other sites More sharing options...
Scarlett Posted March 28, 2013 Share Posted March 28, 2013 There are just so many variables....impossible for us to really know if it would be wise. If you are already close to being upside down I would NOT refi.....I would instead focus on a goal of selling it and getting a mortgage or rent that is more comfortable for you. No house is worth the stress of living so close to the edge if you can help it. Quote Link to comment Share on other sites More sharing options...
Trilliums Posted March 28, 2013 Share Posted March 28, 2013 We're actually looking at doing an IRRL for VA loan. I am not familiar with that, but upon looking it up, I can see a bigger appeal to refinancing as fees seem lower and no PMI is involved (I just briefly looked at some info though). Are you really considering moving within 1-2 years? Are you wanting to move out of the area or are you not happy with the home? Do you know about how much closing costs would be? Quote Link to comment Share on other sites More sharing options...
naturally Posted March 28, 2013 Author Share Posted March 28, 2013 Yes, fees are lower, no PMI, no appraisal. It's an interest rate reduction loan - VA to VA. Really simple. We would love to move soon but DH thinks it might be longer than 2 years. Houses in our area aren't moving fast at all. We just want to be further away from the city and need a bigger house with 3 growing boys (and only 1 bathroom!). Not sure on closing costs. We might be meeting with a broker tomorrow. Our credit union hasn't contacted us back yet. Thanks for all the comments. All points are giving us things to consider. Quote Link to comment Share on other sites More sharing options...
Trilliums Posted March 28, 2013 Share Posted March 28, 2013 Yes, fees are lower, no PMI, no appraisal. It's an interest rate reduction loan - VA to VA. Really simple. We would love to move soon but DH thinks it might be longer than 2 years. Houses in our area aren't moving fast at all. We just want to be further away from the city and need a bigger house with 3 growing boys (and only 1 bathroom!). Not sure on closing costs. We might be meeting with a broker tomorrow. Our credit union hasn't contacted us back yet. Thanks for all the comments. All points are giving us things to consider. From all you have written, I would seriously consider it. If you have to sell this house to move and you aren't in a position to do minor repairs to increase its resale value, that seems detrimental to your long term plans. If you can really lower the mortgage and save that money for 1.5 years and then use .5 - 1 year to fix up the house, you would *probably* be in a better position. BUT, if you have any upcoming major repairs needed, this could backfire. I"d take a good look at roof, water heater, appliances, etc. One thought: I do not know much about VA loans, but if you do use this program, does it affect a future home purchase in any way? Say, does it lock you out of a new VA loan? Best wishes whatever you decide. :grouphug: Quote Link to comment Share on other sites More sharing options...
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