Would you recommend refinancing or home equity line of credit?
we need approx $80,000. as we are buying property in Florida. We have 7 years left to pay on our mortgage ($41,000 @6.25% 15 yr. fixed). We have very little debt. (under $2,000). Our home is valued at $450,000. We have always been nervous with variable rate options. But perhaps now's the time to get a HELOC? I just don't know if we have the stomach for it. Therefore, we are leaning toward refinancing for 30 years - knowing we only plan to be in this home approx. 8-10 more years at which time we would sell the home and pay off the $130,000 ($80,000 plus $41K payoff of first mort & closing fees. We have money in an annuity, my husband collects a pension ($3,000/month) we both still work (he's 54 & I am 53) Combined income of $110.000Please advise as soon as possible by kimk5565 from Orlando, Florida. Feb 25th 2011
Rich Constantine (rconstantine)
#399 ranked lender in California - 79 contributions
Thank you for the information. Based on that, I would say from the looks of it, you would feel safer in a Fixed mortgage, ra. You may also entertain an Interest Only Option? You have plenty of Equity. Otherwise, you can pay Principal & Interest on the Fixed product. You probably decided that a 30 year amortization is better for your situation that a 10 or 15 year fixed. But, consider, maybe, a 10 year Interest Only?? The rates vary amoung them significantly. Sounds like you should have no issues with qualifying. I would love the opportunity to compete for the business. I lend in all States. I have a low over-head and pass the savings to the Consumer. Name is Rich. You can click my link or email rconstantine@myhsoa.com or 714-299-5807. I can get you a quote very fast. Hope this helps. RC
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
Even though your rate is high, you have a low balance with just 7-years to go. ... I suggest leaving it alone. ... You can get a fixed rate home equity loan if you are concerned about a HELOC. ... I suggest U.S. Bank. ... They appear to have the best product for your situation. You could compare them against Wells Fargo to be sure. ... Happy funding, Rudi
WAYNE BLACK (wayne.black)
#7 ranked lender in Georgia - 9 contributions
I would do a no closing cost refinance , this would lower your rate from 6.25 % to somewhere in the mid 5 % range for free , no closing costs , get the cash to buy the lot in Florida and the security if a fixed rate.
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