Author Topic: $65k in Debt, Refinance Mortgage  (Read 7343 times)

Tuskalusa

  • Bristles
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Re: $65k in Debt, Refinance Mortgage
« Reply #50 on: December 30, 2017, 07:55:52 PM »
One thing to remember is that escrow accounts can still get off track once in a while. You probably want keep a $2-3k emergency fund to cover any future discrepancies.

Broadway2019

  • Bristles
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Re: $65k in Debt, Refinance Mortgage
« Reply #51 on: January 18, 2018, 11:37:25 AM »
Current Situation: 20 Year Fixed Rate Interest rate: 3.50%
Monthly payment: $2,869.39 (broken down as $2,041.54 principal and interest + $320.43 property taxes + $51.17 hazard insurance+$252.45 shortage in escrow account)
I think the shortage amount will go away once we are caught up though in escrow. So really it's $2616.

Option #1: 20 Year Fixed Rate Interest rate: 3.750%
Monthly payment: $2,411.14 (broken down as $2,039.54 principal and interest + $320.43 property taxes + $51.17 hazard insurance)
Estimated monthly savings: $458.25 (which is higher because we are also curing your escrow shortage with the refinance)

Option #2:30 Year Fixed Rate  Interest rate: 4.125%
Monthly payment: $2,038.80 (broken down as $1667.20 principal and interest + $320.43 property taxes + $51.17 hazard insurance)
Estimated monthly savings: $830.59 (which is higher because we also are curing your escrow shortage with the refinance)

Both options include closing costs of approximately $3,000 which are wrapped in the new loan.  The only out of pocket expense to you is the appraisal which will cost $450 and credit report of $35.
I just got the appraisal back and it came it at $405,000. We owe $339,000 which puts us at 83.7% LTV. I don't have enough to pay the difference of $15-20k to bring it to 80% (I have about $10k max). Should I still refinance? I am calling the lender to see what the options are and maybe paying upfront pmi may be cheap since it is so close.

Broadway2019

  • Bristles
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Re: $65k in Debt, Refinance Mortgage
« Reply #52 on: February 26, 2019, 10:01:22 AM »
Update: I wanted to update as I am down to $10k in credit card debt and will have it paid off by June this year. Also, we did end up refinancing last year at 3.75% with a 20 year loan. Basically kept our payment at $2400 and did not cost us anything up front. I am sure there were some fees tacked on, but we are not paying PMI.

ItsALongStory

  • Bristles
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Re: $65k in Debt, Refinance Mortgage
« Reply #53 on: February 27, 2019, 07:28:28 AM »
Nice job cleaning up that debt and locking in a historically great 20 year rate.

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« Last Edit: February 28, 2019, 07:27:59 AM by ItsALongStory »

Tuskalusa

  • Bristles
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Re: $65k in Debt, Refinance Mortgage
« Reply #54 on: February 27, 2019, 06:40:17 PM »
Well done. 😀

Dicey

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Re: $65k in Debt, Refinance Mortgage
« Reply #55 on: February 27, 2019, 11:16:31 PM »
Uh, is it a 20 year or 30 year mortgage?

ItsALongStory

  • Bristles
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Re: $65k in Debt, Refinance Mortgage
« Reply #56 on: February 28, 2019, 07:28:14 AM »
Uh, is it a 20 year or 30 year mortgage?
Fixed it, my bad.

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Broadway2019

  • Bristles
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Re: $65k in Debt, Refinance Mortgage
« Reply #57 on: July 28, 2019, 09:37:43 AM »
Update: I wanted to update as I am now DEBT FREE!! Many life changes over the past few months. Paid off all my cc debt, sold a car, and moved across the country for a 70% raise - although HCOL.

I feel like everything is falling into place and could not be happier. Haven't really had a chance to save yet, but am on my way once paychecks start rolling in. Biggest life changer is not having to make cc payments or be underwater. Such a great feeling!

mistymoney

  • Bristles
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Re: $65k in Debt, Refinance Mortgage
« Reply #58 on: July 28, 2019, 10:16:21 AM »
congrats!