Author Topic: Refinance questions, looking for input!  (Read 2084 times)

TheInsuranceMan

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Refinance questions, looking for input!
« on: December 29, 2015, 09:47:27 AM »
Hey MMMer's

So, here is the quick rundown on my situation.
Looking to refinance my acreage along with my student loan balance.  I have enough equity to cover my entire student loan amount, but I have a couple weird things that are skewing my decision making abilities.

I owe 56k on my house and 47k in student loans.  House is valued at about 130k.
Current payments are $650 towards my mortgage and escrow, $340 towards my student loans.  As of April, that student loan payment increases to about $550 a month (as we no longer will qualify for income based repayments due to my wife not being in school anymore, and having dual income).

So, I can refinance at 3.875% for 20 years, fees are about $2,500 to do this.  Payment goes down to something like $762 a month, if I'm remember correctly.  So, that's $300 cheaper than now, $500 cheaper when my payments go up.  But, here is my issue.  We currently have our acreage listed for sale, that contract ends Feb 24th, and we are debating what we are going to do if it doesn't sell.

If we take it off the market, my decision is easy.  Refinance, save the difference, and get on with our lives.  However, in our market, which is small towns, population under 1000, and rare to find a good buyer.  So, do I refinance anyways, risk losing the 2500 in fees if our house sells, or not do it, pay the extra amounts, and not refinance?

We have no other debt, but will need a vehicle replaced soon as baby #2 is on the way. 

Thoughts??

DeltaBond

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Re: Refinance questions, looking for input!
« Reply #1 on: December 29, 2015, 01:03:30 PM »
My first question is why do you need to replace a vehicle?

TheInsuranceMan

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Re: Refinance questions, looking for input!
« Reply #2 on: December 29, 2015, 01:08:11 PM »
My first question is why do you need to replace a vehicle?

Right now, we don't.  But down the road (3 years ish), the vehicle that transports our kids is extremely tight/small and unreliable.  So there's that...and it does an exceptional crappy job on crappy ice and snow packed roads, and well, we live in Iowa, so there is that as well (and not like...a city in Iowa, like rural, no stoplights within 45 minutes of us, county roads that don't get cleaned quickly, rural Iowa).

My truck should go down the road, but I'm putting a new motor in it instead. 

But, that sure wasn't much of the question I had, just a side comment that I should have left out because I know how much stout MMMer's hate vehicles.

vivophoenix

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Re: Refinance questions, looking for input!
« Reply #3 on: December 29, 2015, 01:09:57 PM »
what is the current intrest rate on your loans?

you would save money as far as your cash flow. but what would the new interest look like over 20 years?

why not just refinance the student loans with a earnest or sofi?

that way it isnt tied into your house and you dont have to worry about fees.

you can get like 3.2%
« Last Edit: December 29, 2015, 01:17:15 PM by vivophoenix »

frugaliknowit

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Re: Refinance questions, looking for input!
« Reply #4 on: December 29, 2015, 01:25:20 PM »
1.  Decide if you are dumping the house.

2.  If you are keeping the house, compare the interest rates on the existing mortgage, the re-fi rate, the interest rate on the SL's (you don't mention what they are) and if you can re-fi the SL's somehow, what that interest rate would look like.

3.  Optimize by refinancing anything you can at the lowest possible rates.  Do not focus on payment alone; in the long run, it's about the rates and fees.


TheInsuranceMan

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Re: Refinance questions, looking for input!
« Reply #5 on: December 29, 2015, 01:29:24 PM »
what is the current intrest rate on your loans?

you would save money as far as your cash flow. but what would the new interest look like over 20 years?

why not just refinance the student loans with a earnest or sofi?

that way it isnt tied into your house and you dont have to worry about fees.

you can get like 3.2%

I checked with both those companies and my school isn't listed as one that is available to refinance through them.  Good thought though, I appreciate the input.
The bulk of my loans are 6.55%

vivophoenix

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Re: Refinance questions, looking for input!
« Reply #6 on: December 29, 2015, 01:34:56 PM »
what is the current intrest rate on your loans?

you would save money as far as your cash flow. but what would the new interest look like over 20 years?

why not just refinance the student loans with a earnest or sofi?

that way it isnt tied into your house and you dont have to worry about fees.

you can get like 3.2%

I checked with both those companies and my school isn't listed as one that is available to refinance through them.  Good thought though, I appreciate the input.
The bulk of my loans are 6.55%

what about citizens bank?