Type something and hit enter

ads here
On
advertise here

I'm looking to re-finance my current home to take advantage of the lower rates. One thing of importance is what spurred my interest in refinance is a higher than average probability of getting laid off in the next 4-5 months. It's not definite but it certainly is a possibility. I'm mainly looking to lower the monthly payment, but also want to do the best long term thing. I'm not so much worried about the ability to make all my bill payments for the forseeable future. We have plenty of savings, and some backup (but not so well paying) employment options.

My current loan: Home value: 325k+. 129k principal left for 28 years. 4.5% APR. Principle + interest = $709.

Option 1: 129k re-fi for 30 yrs. 2.875% APR + 2,900 closing costs. Principle + interest = 538 mo.

Option 2: 149k re-fi for 30 yrs with 20k cashout. 2.875% APR + 3,700 closing costs. Principle + interest = 621 mo.

These are actual quotes for my mortgage situation. Obviously both lower my monthly payment. It seems silly to not take the cash at that low of an interest rate, however I have no specific debt to use the 20k on. It will probably just be invested and/or saved and used for future home payments in the event I do get laid off. What would you do and why? Anything I'm not thinking of?



Submitted June 10, 2020 at 11:03PM by Phat_J9410 https://ift.tt/3hgXd2l

Click to comment