refinancing advice?

[Gary_602z]

Built our house about 18 years ago and I fought with my wife to go with a 15 year note rather than a 30. After about 4-5 years Michigan passed the Headley amendment which cut the property taxes in about half and raised the sales tax 2 percent. To make a long story short we kept our payments the same(taxes and insurance going into escrow) and paid it off in 13-1/2 years!

Gary

 

[Jim H.]

Do not know if this was covered....but what about the new law would help if you do not owe more then the house is worth but might not have 20% equity in now since values have dropped? Thanks......

Jim

 

[gpcollen1]

I am currently waiting for the new federal program so I can refi without worrying about the value of my house. This program will happen and benefit many of us that owe more than the house is currently 'worth'. While I currently have a low interest rate, in the 5s, getting something around 4 is very attractive as well as being able to bundle my Home Equity loan in with it. Will see what the costs are for the 30, 20 and 15 yr notes.

BOTTOM LINE - do you want lower monthly payments or do you want to pay the home off faster?

I am also waiting for this program as well. Do you think they will be offering rates in the 4's? I looked into doing a 125% refi and the rates they offered were high 5's for this program when a 30yr fixed with 20% down were in the 4's.

After putting over $100k worth of improvements to the house after it was built 6 years ago, it still wasn't worth enough for a 125% loan. It killed me. A $40k pole barn was only valued at $7k. A finished 500 sq ft basement with a Jotul Oslo and a wet bar was only worth $2k. There is no logic behind any of this stuff.

The new program will not kill you for what the % over the value is...that is the beauty. It is just to help those of us that are current that could use some relief. Simplified yes but that is hat it is...