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Is refinancing my home right for me right now?

I currently have a 30 year fixed at 70000 and a HELOC with a balance of 10000. Original loan is 4 and a half years old at 6.25%. HELOC is interest only at 7.25%

Minimum payments are 560 on original and 60 on HELOC(although I try to pay 100 there)

I just ran my credit report and TransUnion says my score is 752.

Broker is advising me that closing cost will be 2400 & they can roll it into new loan for a principle balance of 83000. With an interest rate at 5%, he say total monthly payment will be 580.

According to my math, it would take me about 13 mos., to start 'saving' money in the long run and of course, my monthly output would be immediately reduced.

However, I plan on selling in 2 years (plans, like life, subject to change)

Any advice? Would it be wise to refi., even if I plan on selling in just a couple of years?

Also, are these 'closing costs' negotiable in any way?

Thanks in Advance...Much Peace...

1 Answer

Relevance
  • jwishz
    Lv 7
    1 decade ago
    Favorite Answer

    Yes, your credit score is high enough you should be able to accomplish the re-fi. Only concern is whether or not you have enough equity for the lender.

    You should also do a search for lenders where you live. Just google "home finance (city,state).

    Compare the rates. You may be able to re-fi without the broker points

    Source(s): @!
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