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My wife and I bought a house in Aug 04. At the time Prime was 4.75% and we
took a chance on an interest only loan through countrywide whose interest
rate equals Prime. It is essentially a HELOC and so we pay no PMI. The value
of the house at the time was around $355K and the loan amount was $339K. We
knew we planned on being in the house for about 3 years so interest only
seemed the way to go. At first our monthly payment was around $1200. Now it
is $2350. We also pay about $2400/yr in taxes plus $700 for home insurance.
I talked to someone about refinancing and here is what I was offered:
A split mortgage where 80% of the loan is fixed at 7.125% (interest only)
and where the remainder is fixed at around 8.125%. It is a zero cost loan
and the monthly payment would be around $2350 (including taxes and
insurance).
So if I go with this deal then I'm essentially saving around $250/month. I
was just wondering if anyone thinks I should be able to get a better deal.
Keep in mind we plan on moving in about a year.
thanks,
brian
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Refinancing advice needed
