Husband and I are 53- 1 child of 14- can you advise about interest only refi on home?

Our curr. mtg is 210,000- value of house is 356,000- income is $139,000- We asked for 42,000 to make home improvements and to put into a great investment and !0,000 in CD paying 5 percnt. Our refi rate will be 6.125, . We will stay in this house no more than 7- 9 yrs. Our rate is fixed for life and after 10 yrs. it goes to a regular fixed. Should we pay extra principal now? Our area is an appreciating one, and if we pAy $120 /mo. in 8yrs., we'' have paid less than n$20,000. Out payments with interest only for 40,000 + closing costs and escrow costs are equal to our mtg. now. Should we accept loan? THANKS SO MUCH!!! Oh, we have great savings for retirement and we work for the govt. and will receive good pensions. Should we take loan?

Great Product you are getting into the 30 year fix I/O (interest Only) is perfect product for people today.
Wanna beat the bank? Than pay the mortgage payment every two weeks? You will finish off that loan in 10-15 years.

Your interest rate seems very high for today's rates. I would suggest getting a couple quotes before deciding which one to go with.

Conforming Loan which you have right now max's out at $417,000. So unless you have poor credit like below mid 600's your in need of a few opinions.

Good luck!

I don't know, sorry

i would cunsult in a loan officer.... make sure everything works out and then look around until you find the lowest price

please, stop messing up your life financially.
CD = certificate of Depreciation.
don't take the loan - your job is not guarenteed . don't care what they say at the job.
visit daveramsey.com to learn what bankers pray you never ever learn about you money.

Why are you taking a loan at 6.125% to put into a CD paying 5%? You are literally handing the bank free money of 1.125%. Don't take this loan

At 53 with a good income you need to consult a fee based financial planner even if it costs you $1000 to meet with him for 5 hours. Without trying to sound too harsh, I am willing to bet you have thrown way more money than that away to the bank, and your income gives you and your family a lot of potential to be very financially secure

$42,000 in home improvements will not realize $42,000 in increased value, unless it is $42,000 in repairs that a typical buyer in your market would require before purchasing your home. Dollar for dollar, expect around 50% recapture of the $42,000.

You present two present worth questions, with significant unknown factors. The most important factor is the amount of closing costs. The second assumes a market appreciation factor for real estate to remain constant over the life of the holding period for your loan (8 years). The third assumes a CD rate of 5%/year over the holding period for your loan. The fourth appears to assume a sale at the end of the holding period at a value that assumes market appreciation for both your current equity and for your home improvement.

You really need to consult a financial analyst, not a mortgage broker or someone who has a vested interest in you receiving a mortgage, a pension, life insurance, or any other financial product.

There are much better returns out there than 5%. I am involved in many right now. I say u r ok as long as you are making more than the 6.125%. But shoot for the stars. I wouldn't settle for less than 15%. I have many available right now that you could make much more than 15%. My opinion is such that if you can leverage money to make more in a reasonable way then do it. Just look for good low risk deals. There are even deals that are legit that don't even require money. just good credit. If u r interested in learning about some then get w/ me @ stonesolutioninc.com and i can get u more info

Hey ..
If your loan officer is a bit more hardworking then the credit won't be a problem for refinancing or for getting a new mortgage .Ask you rofficer what rate he is providing you and if it isworse than 5-6 % then write to me at kishaloy_bhowmick@yahoo.com ,will provide u a better deal...
Refinancing rates are very well right now .Say me which state do you leave in...
regards.
kish

I answer financial planning questions - but I do not really understand what you are trying to do.

First of all, did somebody contact you by phone and try to get you to refinance? Or did you just think about it on your own as a possible way to make those home improvements?

One reason is that depending on the home improvements, you may not need a loan at all.

Or put it this way: you currently have about $146,000 in equity. You want to subtract $42,000 , giving you $104,000 in equity, and make interest only payments for 7 to 9 years until you sell the property.

Here's the thing. You MAY choose to have your question answered on this or any other forum of your chosing, but the space limitations prevent me, and others from addressing all the points you need to consider. Then add to that the time that it will take.

I see many potential problems areas. You might be fine all across the board - but there is no way to tell from here. You need to hire somebody who understands all of the areas of concern.

In a nutshell, you might be okay to refi with that lender, OR you might be making a big mistake. But with the limits of available information you provide - it's very hard to advise you. You just have to run the numbers both ways, all the way to 66 or 67. You can e-mail me with any specific questions, but you should most likely hire someone locally, and that's my agenda at this point. Because it isn't clear how much you understand, and what areas are weaker for you, but regardless you should just stop the loan process RIGHT NOW, until a full assessment can be made of your situation, by somebody who isn't trying to get a comission off a loan.