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Refinancing home to get money! 15 year or 30 year?
We need to refinance our home fha to get out all our equity to pay off bills. Our mortgage will be 250,000 at 5.8 percent. My husband is 51 and I am 43 we will not hae any equity. Should we do 15 year or 30 year. I want to do 15 year old but we will be 200 short a month. I am worried because of our age and the current market. We could get a second job since we will be short on 15 year. Any adice?
some of my keys are broke!
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| By
wh |
Posted on
06/09/08 Total Answers
6 |
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| Answers- |
| Get a 30 year loan that has an option for paying at the 15 year rate. Then, when things get tight (as they are sure to do) you can always drop back to the lower 30-year payment without a penalty.
Don't ever rely upon a 2nd job, an increase in salary or building equity. Plan on what you will do if the worst happens. Then, if it doesn't, you are in for a smooth sail. |
| Answer by :
Cheryl G On Date
2008-06-09 14:07:29 |
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| Go with the 30. You can never depend on living in a place that long anyway. The payments will be lower, and you can take more out. If you are not planning on selling for 4 -5 years, the market doesn't matter. It'll rebound by then. ... but not sooner. If you don't have equity now though, I doubt youwill be able to refinance. They will only refinance if you have 20% equity. If you qualify, you can always make bigger payments to get the principle down. |
| Answer by :
RED On Date
2008-06-09 14:15:54 |
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| Don't strap yourselves in to a 15 year mortgage! Get a 30 year. It sounds like you won't be able to pay a 15 year at this point. |
| Answer by :
Biggie @ Arbor Mortgage On Date
2008-06-09 14:16:05 |
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| If you intend to sell the house within 5 years...
You should get a 30year fixed with an Interest Only payment. Rates are ~.375% higher, but the required payment will be $s lower. Now hold on... you have the OPTION to pay more to principle, but it is NOT required. Putting the extra $100 each month will lower your principal faster than if you accepted the amortized payment... for the first 5 years. (all you doubters out there need to check your amortization tables)
If you intend to retire in the house...
Get the 30 fixed but pay the 15yr note payment every month or speak with the mortgage servicer about optional bi weekly payments. As a result, you will dramatically lower your principal.
Remember, your cash flow will be better now that your credit cards are all paid off. BTW... don't close the credit cards... open and $0 - $25 balance credit cards are GOOD for your credit score.
Great question!
Best of luck to you! |
| Answer by :
David Beasley On Date
2008-06-09 14:18:34 |
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| I personally would go with the 30, why make it harder on yourself with a 15 year and have to get second jobs just to make ends meet. You could look at a 20 year, but I think you may find that there's not much difference between that and the 15, but it doesn't hurt to look |
| Answer by :
Jeromy W On Date
2008-06-09 14:20:26 |
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| First off, I always worry when people start using their home as a big ATM.
With that being said, if you are going to be $200 short a month on the 15 year note, you shouldn't even be considering this.
You won't be in this house forever, hopefully when you do go to sell, you won't owe more than it is worth at the time since you are taking all the equity out of it.
I'd rather see you take the second job to pay your bills rather than refinance this house and possibly put yourself in a precarious situation. |
| Answer by :
godged On Date
2008-06-09 15:44:00 |
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