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Discussion Starter #1
Wells Fargo claims to have come up with a plan to pay off our house in 15yrs at 4.5-5% fixed, with the same monthly payment we currently have.
Our current loan is a 30 yr @ 6.5% fixed.

What's the catch?!
 

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probably no catch, i would go for it. if your doubtful get any paper work you have to a real estate lawyer look it over.
my neighbor skipped 3 mos. of payments bc he is unemployed and instead of foreclosing his house they did a mortgage mod and dropped his interest to 4% for the rest his loan and his mortgage went from 1000 a month to 500!
 

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How exactly will the monthly payment be the same? Only way I can think is if you've paid off a good chunk of the loan (i.e. paid 10+% principle) already and you're paying the remainder off in 15 years.

Otherwise you need to look at the details. If you just cut the life of the loan in half and drop the interest by 2%, the monthly won't be the same.
 

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i know my mortgage over 30 years is total half a million, so if you cut the interest by 2% over half the loan that is a HUGE savings since comparable situation would be 2% lower interest for 30 yrs. still but half the monthly payment, its about the same as op's deal

edit: i just used mortgage calculator and with just generic numbers if your mortgage is brand new you would need almost a 4% drop in interest
 

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Say your loan is for $200k. Monthly is roughly $1250.

Only way to get the same monthly at 4.5% for 15 years is to have paid off $30k already, so the loan would be for $170k. Even then that would be ~$1300.
 

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Either bimonthly payment plan or else you've already paid down a good bit of the principal on the loan, so the refinance is a lower principal amount.

As mentioned, on a 200k you'd need to have paid off about $30k of it (about 35k actually). So the only way to have the same monthly payment going from 30 year/6.5% to a 15 year/4.5% is if you have already paid down about 20% of the original loan amount and are refinancing to the lower mortgage principal.
-Matt
 

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Discussion Starter #11
Yeah, may be a bi-monthly payment plan. We've paid a little over 10% off of the principle.

We'll see what fees/closing costs will be associated.
 

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Discussion Starter #12
The Branch Manager made it real obvious that he's only out to make a buck...I let him know I no longer need his services.

He included our 2nd mortgage loan into his refinance plan. I told him we had intentions of paying that loan off in a couple weeks. His response?
"Once we wrap up your 2 mortgages, you can still apply the payoff amount of your 2nd mortgage, and it will go toward the principle."

ORLY? Why would I wanna finance more than I need to...so I can pay you more $ in fees?! whatadouche
 

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Are you still shopping to refinance (different broker obviously)? At 6.5% you probably should as 30 yr fixed is running high 4 to low 5%. You would save a ton of money if you do not plan on moving in the next few years.
 

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Discussion Starter #15
[quote author=rhodes991 link=topic=170720.msg3623114#msg3623114 date=1271690868]
Are you still shopping to refinance (different broker obviously)? At 6.5% you probably should as 30 yr fixed is running high 4 to low 5%. You would save a ton of money if you do not plan on moving in the next few years.
[/quote]

We need to decide if we want to try to find a larger house. If not, then we will definitely do a Re FI.
 
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