Should we ReFi if we plan to payoff soon?
December 3, 2012 10:26 AM Subscribe
ReFi Filter: Should I pursue a HARP 2.0 refi? Snowflakes inside.
posted by humboldt32 to Work & Money (4 answers total)
I'm receiving solicitations for refinancing my mortgage currently at 6-ish% with 26 years remaining. The current loan is for $171,300 30yr fixed originated in 2008. That was a refi to pull some equity out of the property. We originally bought the place in 2002 for $137,500 with the loan amount of $126,000.
The property is large and we created a separate lot and built a 2 bedroom house that we rent out for $800/month. We own this free and clear.
There's a very good chance that we might sell this rental and pay the whole loan off in the next 5 years. I'm sort of stuck on the part where we keep reseting the 30 year period each time we refi and how a possible full pay-off factors in.
The HARP 2.0 offers are coming in at 2.6% - 3.5% no appraisal and no upfront fees. In addition to the unsolicited offers, the mortgage broker that we used for the original loan and the 2008 refi is also inquiring if we're interested. Working with this broker in the past has been a worthwhile and positive experience.
Hopefully this is enough info for your feedback. I'm a bit befuddled.