Refinancing Home Mortgage
I bought my first home about 8 months ago. I had no down payment and ended up getting two separate loans.
The first was $114,000 @ 6.75% 30 year fixed.
The second was for $38,000 @ 9.436% 15 year balloon.
Monthly payment on the first is: $1014.12
Monthly payment on the second is: $316.05
I can pay this. Its far from ideal but I’m paying only slightly more per month than I would for an apartment. I thought I might be able to refinance before too long but then too many people making $35K bought $350K houses and I’m thinking the chances of my doing that right now are slim especially since I’ve paid down next to no principle at this point.
Let’s leave the atrocious 9+% one alone for a minute. I know there are insurance fees and real estate taxes built into mortgage payments but I’m plugging $114K and 6.5% over 30 years into the generic calculators online and not getting anywhere near what I’m paying. Any help?
Was supposed to be 6.75% used for calculations…typo.
This is about mortgage information questions.
6 Responses to Can somebody give me a clue on my mortgage payments?
grayhambone
April 22nd, 2010 at 7:22 pm
you’ll pay over 365 k for that loan over 30 years. what’s to get?
1014 x 12 x 30
Galt Realty
April 22nd, 2010 at 7:32 pm
Yes, your problem is those taxes and insurance payments. In order to accurately figure out what your payments would be, you have to know what you pay for those so you can add it to the payment that’s coming up on the online calculator.
There is a way to estimate it. Figure out what your current principle & interest payment is, based on your current interest rate (using that online calculator), then subtract that amount from your actual payment. That “leftover” amount should be what you’re paying each month for taxes and insurance. Then when you go to the online mortgage calculator with the new interest rate, add your “leftover” number to the number you get from the calculator, and that should be your “new” payment, more or less.
gospeldiva
April 22nd, 2010 at 8:24 pm
you should be able to refinace by now, you only have to wait 6 months i believe, if you have been on time with your payments you should be O.K…You should consult a Real Estate Agent
edwinjoel22
April 22nd, 2010 at 8:55 pm
Seat thigh, and wait 2 years , then do the refinance, the market is so crap , (thanks to Mr Bush) that probably your equity is gone. At least you are not alone, the whole country is in the same situation.
estielmo
April 22nd, 2010 at 9:17 pm
Do you know how god-awful high insurance and taxes are in your county? And they usually keep a smidge extra just in case. And that doesn’t even count the PMI.
Your payment sounds about right to me. Check with your lender.
Dale H
April 22nd, 2010 at 10:08 pm
I get 739.40 for principal and interest. That would make the taxes and insurance about 274.72. Does that sound about right?
I don’t know why you would be using 6.5 as the rate if it is 6.75.
You are right. It would cost too much to refinance at this point even if you could. It would be years before you would actually be saving money.
I would focus on paying down the 2nd. The rate on the 1st is not that bad. If you add abut $80/month to the payments on the 2nd, you will pay it off in 15 years. If you could pay $500/month on it, you could pay it off in less than 10 years.
I hope this helps.