M
marcus
Guest
I've heard "your payments are finally paying more principal by now... why re-set to a new loan wherein your payment is all interest again? and pay origination and points to be there?"
This makes sense to me. I just calculated roughly and it may be that now 45% of my payment is principal... and I'm paying down the principal at about 4% a year.
It is an adjustable rate loan, currently 7-1/2% but I expect in September it will adjust down to the floor. That maybe 6-1/4% but it might even be lower. So my payments will go down in another 4 or 5 months.
Of course, 12 months later, it might go back up 2% to as high as 8-1/4%... but by then even less of each payment will be interest.
Refinance or not? Variable rate has always been good for me so far in my life never had a "sub-prime" loan (I've always maintained 20% equity (gulp, well on the primary that I'm talking about. Yes, there's a HELOC too... adjustable rate, good rate right now.)
I like being 25% through it..
This makes sense to me. I just calculated roughly and it may be that now 45% of my payment is principal... and I'm paying down the principal at about 4% a year.
It is an adjustable rate loan, currently 7-1/2% but I expect in September it will adjust down to the floor. That maybe 6-1/4% but it might even be lower. So my payments will go down in another 4 or 5 months.
Of course, 12 months later, it might go back up 2% to as high as 8-1/4%... but by then even less of each payment will be interest.
Refinance or not? Variable rate has always been good for me so far in my life never had a "sub-prime" loan (I've always maintained 20% equity (gulp, well on the primary that I'm talking about. Yes, there's a HELOC too... adjustable rate, good rate right now.)
I like being 25% through it..