I bought a house in July with a 30-year fixed at 4.875%. With rates plunging, I’m looking into refinancing and was curious if I can do so with 2 loans. I should have 20% or so in equity and don’t want to take any cash out just replace the mortgage I have now. I have an obsessive compullsion to pay down my debt as quickly as possible and want to structure a program that would allow me to do that. My objective is as follows:
1. Take a new 30 year fixed for the bulk of the loan.
2. Take an additional loan with a 10 year fixed which I would pay down in hopefully 5-6 years.
In doing this, I would have a much more managable long term payment and save quite a bit in interest.
Does anybody know if direct lenders can accomodate something like this or would I have to go through a broker? If so, would I have to pay fees on 2 loans?
NG
The 2nd will always be be at a much higher rate. I would just take a 30 year fixed on the whole thing. Then figure out how much more you would have been paying now with 2 separate loans and make additional principal payments in that amount. With big principal payments coming in on the front end of your loan you will save a ton in interest over the life of the loan, will pay it off much faster than 30 years and can give yourself payment relief anytime you want by stopping the additional principal payments.
NG
The 2nd will always be be at a much higher rate. I would just take a 30 year fixed on the whole thing. Then figure out how much more you would have been paying now with 2 separate loans and make additional principal payments in that amount. With big principal payments coming in on the front end of your loan you will save a ton in interest over the life of the loan, will pay it off much faster than 30 years and can give yourself payment relief anytime you want by stopping the additional principal payments.
NG
The 2nd will always be be at a much higher rate. I would just take a 30 year fixed on the whole thing. Then figure out how much more you would have been paying now with 2 separate loans and make additional principal payments in that amount. With big principal payments coming in on the front end of your loan you will save a ton in interest over the life of the loan, will pay it off much faster than 30 years and can give yourself payment relief anytime you want by stopping the additional principal payments.
NG
The 2nd will always be be at a much higher rate. I would just take a 30 year fixed on the whole thing. Then figure out how much more you would have been paying now with 2 separate loans and make additional principal payments in that amount. With big principal payments coming in on the front end of your loan you will save a ton in interest over the life of the loan, will pay it off much faster than 30 years and can give yourself payment relief anytime you want by stopping the additional principal payments.
NG
The 2nd will always be be at a much higher rate. I would just take a 30 year fixed on the whole thing. Then figure out how much more you would have been paying now with 2 separate loans and make additional principal payments in that amount. With big principal payments coming in on the front end of your loan you will save a ton in interest over the life of the loan, will pay it off much faster than 30 years and can give yourself payment relief anytime you want by stopping the additional principal payments.
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