I have a few years to finish paying my house i never refinance before what could happen if i try doing it now

Alisa
i never knew that i might had had refinance my mortgage a few years after i purchase my house, i read somewhere that to refinance now is not worth it, because if i only have a few more short years to go on paying up my loan, i might have to start from scratch and refinance again for 30 years or is it?

Casandra
Call around at banks, start with YOUR bank. Do not go to a mortgage company their fees are RIDICULOUS! And you will meet with fast talking sales people who will promise you everything but deliver nothing!No matter what you will have to have an appraisal and that is out of YOUR pocket. It can be anywhere from $250-500 depending on where you live. Do not agree to an appraisal with any lender until you know you definately want to proceed with the deal. It is h*ll to get the appraisal transferred to another lender if you change your mind about what lender you want to use. Many banks can give loans for as low at 10 years. Frankly, if you have less than 10 years, I would inquire with the mortgage holder on how to make additional payments toward the principal which would decrease your monthly interest payments and cut down on the overall payments.Interest rates are great right now, but unless you can drop your rate by least 1 1/2 %, I wouldn't bother.I am a former loan officer and I worked for a private mortgage company so I know what kind of slime buckets work there first hand. I left because I had morals and couldn't stand the feeling of being surrounded by greedy ba$tards.

Joette
no thats not true I can refiance you and put u in a 15 yr loan.Alan SmithSenior Mortgage ConsultantNet Equity Financial, Inc.Fax- 206-888-6253Mobile 443-621-2333Direct 443-725-3554asmith@netequitymtg.com Report Abuse

Rosalina
You don't have to get a 30 year note. There are terms for 20, 15 and even 10 year loans, I think.I never recommend a 30 year note. Too little goes on the principle in the onset of the loan. We like our 20 year note because it offers some real meat toward the principal from the onset. Sure, lots of people get 30 year notes but they just don't do the math. The difference in the monthly payment is not that much. Those who have bought without thinking it through are the very reason we are where we are today. My finance company, which BTW, is a credit union, assured me that I could come out ahead if the interest rate went down a whole percentage point from where my current rate is. I did the math and over the length of the loan a 1 percent drop would save me around 50k.I look forward to the rates dropping.

Danilo
no u can refiance for 10 years if you want. your payment should go down. Also you its better to have a house pymt. than not too. At the end of the year it would be a deduction when you file your taxes. without a payment you may have to pay more taxes not having a deduction. I would refiance fo 10 years and have a smaller payment.

Christinia
I understand exactly what you're trying to say. What you're concerned about is the amortization schedule. See initially when you purchase a home, the greedy lenders want to make sure they make the most profit they can as soon as they can. So if you're payments are $1, 000 a month, for examples sake you're paying $950 in interest, and $50 in principal towards your home every month for the first year. As the years go by, the amount of interest you pay becomes less, and the principal more. So at around year 15 with each $1, 000 payment your making, $500 is going towards interest (to the banks pocket), and $500 towards principal. If you're towards the end of your loan, refinancing would reset your amortization schedule. You'd be paying tons of interest all over again. If you are in a position that you need money urgently, and must refinance, try not to touch the first mortgage and get a home equity line of credit (HELOC), from a local credit union. This way you're not affecting the amortization schedule on the first mortgage, but you'd basically have a line of credit, like a real large credit card payment to deal with.

Claire
My question is why do you want to refinance, if you don't need to don't do it. If you are trying to reduce your monthly payment that may be a good idea. If you are wanting to pay off your house, have you tried sending in more than your payment to be applied to the Principal amount this will cut down on how long and how Much you have to pay. There will be up front cost to you if you refinance, how much depends where and what you have done. As for being tied to a 30 year mortgage i do not think that will happen as the finance company should offer you a choice of options as to how long and how much you will have to pay. The longer you pay the more it cost you in interest. If you do check around to get the best deal, if it is a different place than you have now they may payoff what you owe with the company you have now and then you would pay them. I hope this helps

Earle
There are several ways to refinance a home. You may want to look at a revolving line of credit (equity loan). Some allow you to make monthly payments on interest only.

Dalene
sorry your not expressing yourself very well. read outloud what you wrote carefully. some numbers would help as well. so lets say you bought the house 20 some years ago with a 200k mortgage, so now the house is worth say 300k, and you owe most likely around 40k. Nobody will have a problem loaning you the difference, 260k, but is that what you really need? Most likely they will want you to pay off the balance of the first loan (the 40k) so they will be the new first mortgage, so in essence you will borrow 40k more than what you want to spend, and then pay off the original loan. As far as terms are concerned why do you want a new 30 year mortage??? they have 5, 10 and 15 year mortgages as well. and the shorter the term, the lower the interest rate.