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The Water Cooler
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Wanting to refinance my house and get some work done
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<blockquote data-quote="dru" data-source="post: 1924219" data-attributes="member: 3047"><p>Okay so the tables below should help illustrate this. In the first table, these are estimates of your current monthly payment at a given interest rate and mortgage. The second table shows the same thing but what your monthly payment might be after a re-finance that shaves 2% off your rate. The last table shows your average monthly savings as a result of re-financing. Note that this DOES NOT include the costs of refinancing which are significant and on a 100,000 refinance could easily be between 4,000 to 6,000 dollars</p><p></p><p>Initial interest rate........<strong>75,000.....100,000.....150,000.....200,000</strong></p><p>7.50%...........................$524.41.....$699.21.....$1,048.82.....$1,398.43 </p><p>6.50%...........................$474.05.....$632.07.....$948.10.....$1,264.14 </p><p>5.50%...........................$425.84.....$567.79.....$851.68.....$1,135.58 </p><p> </p><p> </p><p>re-financed rate...........<strong>75,000.....100,000.....150,000.....200,000</strong></p><p>5.50%..........................$425.84.....$567.79.....$851.68.....$1,135.58 </p><p>4.50%..........................$380.01.....$506.69.....$760.03.....$1,013.37 </p><p>3.50%..........................$336.78.....$449.04.....$673.57.....$898.09 </p><p> </p><p> </p><p>Monthly Savings..................<strong>75,000.....100,000.....150,000.....200,000</strong></p><p>7.5% to 5.5% rate reduction.....$98.57.....$131.43.....$197.14.....$262.85 </p><p>6.5% to 4.5% rate reduction.....$94.04.....$125.38.....$188.07.....$250.77 </p><p>5.5% to 3.5% rate reduction.....$89.06.....$118.74.....$178.12.....$237.49 </p><p></p><p>But all this might be a moot point since you said the house is worth less than what you owe one it (you are underwater - which sucks....sort of) Oklahoma wasn't hit as badly as other states by the recession and popping of the housing bubble so you might yet come out ok but your LTV is probably pretty near 100% (lower is better for a refinance, usually). It will probably be pretty difficult to get a re-finance of any sort since you are underwater or close to it on your home. </p><p></p><p>When you think about it, you are able to get a mortgage because the bank holds your house as collateral. But what bank would effectively loan a huge sum of money for something that is right off the bat worth less than the loan? The same goes for a HELOC. If the value of your home is less than what you owe on it then you have, by definition, no equity. Or rather, negative equity.</p><p></p><p>If you want to see a (VERY) rough estimate of your home's value, go to zillow.com and find your home. Also, talk to a realtor, they may be able to help you with recently sold homes comparable to yours so that you can get an idea of what its fair market value is at this point. Sorry the news couldn't be better but hope it helps.</p><p></p><p>ETA: Just realized the formatting on the tables sucks. Sorry about that, but I hope you can read it</p></blockquote><p></p>
[QUOTE="dru, post: 1924219, member: 3047"] Okay so the tables below should help illustrate this. In the first table, these are estimates of your current monthly payment at a given interest rate and mortgage. The second table shows the same thing but what your monthly payment might be after a re-finance that shaves 2% off your rate. The last table shows your average monthly savings as a result of re-financing. Note that this DOES NOT include the costs of refinancing which are significant and on a 100,000 refinance could easily be between 4,000 to 6,000 dollars Initial interest rate........[B]75,000.....100,000.....150,000.....200,000[/B] 7.50%...........................$524.41.....$699.21.....$1,048.82.....$1,398.43 6.50%...........................$474.05.....$632.07.....$948.10.....$1,264.14 5.50%...........................$425.84.....$567.79.....$851.68.....$1,135.58 re-financed rate...........[B]75,000.....100,000.....150,000.....200,000[/B] 5.50%..........................$425.84.....$567.79.....$851.68.....$1,135.58 4.50%..........................$380.01.....$506.69.....$760.03.....$1,013.37 3.50%..........................$336.78.....$449.04.....$673.57.....$898.09 Monthly Savings..................[B]75,000.....100,000.....150,000.....200,000[/B] 7.5% to 5.5% rate reduction.....$98.57.....$131.43.....$197.14.....$262.85 6.5% to 4.5% rate reduction.....$94.04.....$125.38.....$188.07.....$250.77 5.5% to 3.5% rate reduction.....$89.06.....$118.74.....$178.12.....$237.49 But all this might be a moot point since you said the house is worth less than what you owe one it (you are underwater - which sucks....sort of) Oklahoma wasn't hit as badly as other states by the recession and popping of the housing bubble so you might yet come out ok but your LTV is probably pretty near 100% (lower is better for a refinance, usually). It will probably be pretty difficult to get a re-finance of any sort since you are underwater or close to it on your home. When you think about it, you are able to get a mortgage because the bank holds your house as collateral. But what bank would effectively loan a huge sum of money for something that is right off the bat worth less than the loan? The same goes for a HELOC. If the value of your home is less than what you owe on it then you have, by definition, no equity. Or rather, negative equity. If you want to see a (VERY) rough estimate of your home's value, go to zillow.com and find your home. Also, talk to a realtor, they may be able to help you with recently sold homes comparable to yours so that you can get an idea of what its fair market value is at this point. Sorry the news couldn't be better but hope it helps. ETA: Just realized the formatting on the tables sucks. Sorry about that, but I hope you can read it [/QUOTE]
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