How Should I Figure Out If I Should Refinance My Jumbo Mortgage?
1. calculate your new monthly payments (dozens online - scour on mortgage calculator)
2. find out the total closing costs and fees fro the lender
3. step 2 divided by step 1 is the "payback period", the number of months it will take you to break even on the deal
for example, your payments move about down by $150 per month, but the feels total $3000. It will take 20 mos. to "break even"
You could also simply affix the $3000 in fees to the principle (borrow the fees)
You can save a ton this path, but it does not make sense to drastically increase the term of the loan, i.e. if you one and only have 12 years left on your mortgage, why break open a new 30 year loan?? Always watch the total payout, the 12 year at a high rate may actually cost you less. Source(s): be there, done that
Related Questions:
Where is the logic contained by sub prime mortgage products?
If these people ar high risk at 5% interest what qualify them for the same money at a higher rate ....surely this is fraud. No Elizabeth, it is not a fraud.. the piece is that the financing company is taking additional risk to...
2. find out the total closing costs and fees fro the lender
3. step 2 divided by step 1 is the "payback period", the number of months it will take you to break even on the deal
for example, your payments move about down by $150 per month, but the feels total $3000. It will take 20 mos. to "break even"
You could also simply affix the $3000 in fees to the principle (borrow the fees)
You can save a ton this path, but it does not make sense to drastically increase the term of the loan, i.e. if you one and only have 12 years left on your mortgage, why break open a new 30 year loan?? Always watch the total payout, the 12 year at a high rate may actually cost you less. Source(s): be there, done that
Related Questions:
Where is the logic contained by sub prime mortgage products?
If these people ar high risk at 5% interest what qualify them for the same money at a higher rate ....surely this is fraud. No Elizabeth, it is not a fraud.. the piece is that the financing company is taking additional risk to...