Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Need Help with Refinance Numbers
Old 02-25-2009, 08:02 AM   #1
Dryer sheet aficionado
 
Join Date: Jan 2008
Posts: 40
Need Help with Refinance Numbers

I'm looking to refinance my mortgage with the lowest up front costs and monthly payment possible. My job is scheduled to be off-shored at the end of this year, so I'm trying to lower my costs now in preparation for the worst. I'm currently looking at penfed 5/5 ARM but am unsure if it's the best choice for my situation. The 5/5 is locked for 5 years and adjusts once every 5 years with a max one time adjustment of 2% and lifetime of 5%. I probably will not stay here more than 10 and it will most likely be much less. I'm not sure of whether or not to pay points. Here are the numbers:

Current mortgage balance: 178k
Current home value: 240k
Current rate (30 year fixed): 6.25%
Monthly Payment: 1,115

Penfed 5/5 0 pts Rate: 4.625%
Estimated Cash at Closing: 441
Estimated Payment: 915

Penfed 5/5 0.5 pts Rate: 4.375%
Estimated Cash at Closing: 447
Estimated Payment: 889

I chose to roll my closing costs into the mortgage during the application process, I do not think that it is correctly taken into account in the 2nd estimate, so figure about 1k more needs to be rolled into the mortgage for the 2nd estimated payment. I'm not sure how much more per month this would work out to be... 1k/360 is < 3.00$ a month, so disregarding interest, this would be the best deal. Is this accurate?

From what I understand, the break even point on this will be about 2-3 months, so it seems like a no brainer right now. Am I missing anything? Does anyone have any experiences with the 5/5 mortgages? The closing costs look to be significantly lower than the 30 year fixed mortgages... no 1% origination fee.
__________________

__________________
theHundt is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-25-2009, 08:36 AM   #2
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 223
Here's a great site for comparison calculators, calculating breakeven points and other mortgage info.

The Mortgage Professor's Website
__________________
F-One is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Refinance or pay off mortgage? RetiredWW FIRE and Money 3 01-21-2009 10:12 PM
Trying to refinance mortgage with PenFed ExtinctBird Other topics 9 04-07-2008 04:56 PM
Should I refinance? JohnDoe FIRE and Money 12 01-16-2008 09:41 AM
refinance puzzle semtex FIRE and Money 14 01-08-2008 03:38 PM
Refinance? Bimmerbill Young Dreamers 1 03-27-2006 12:06 PM

 

 
All times are GMT -6. The time now is 11:47 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.