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Should I refinance to consolidate loans?
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Should I refinance to consolidate loans?
I have a mortgage, home equity loan and credit card I would like to consolidate. I am not 100% positive of the home equity loan but I think it is about 8%. The mortgage is 5.25% and the credit card 13%. My credit union looks like it is about 5% today (BFCU).
Just wondered if anyone was on here that is familiar with this and to see if we can save money. Thanks :)
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Posted 1/16/09 3:19 PM  |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Should I refinance to consolidate loans?
I would assume the majority of the money is on the first mortgage at 5.25%
then it's really not worth it- for one- you will be paying off the credit card for 30 years- the amount of interest will be insane
and it's really only worth it to re-fi when the rate is a full point lower then your current rate
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| Posted 1/16/09 3:24 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Should I refinance to consolidate loans?
Posted by Beth1210
I would assume the majority of the money is on the first mortgage at 5.25%
then it's really not worth it- for one- you will be paying off the credit card for 30 years- the amount of interest will be insane
and it's really only worth it to re-fi when the rate is a full point lower then your current rate
I was actually thinking of only 20 years and when I calculated it, it would be over $200 savings per month (if I am figuring it out right-lol!!) which would help us.
I don't know though-thanks for your input :)
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| Posted 1/16/09 3:27 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Should I refinance to consolidate loans?
it depends on what the balances are.
you would probably do better doing a HE LOAN (if you have the equity) to pay off your CC. This way you are paying down principal each month, and the interest is still tax deductable.
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| Posted 1/16/09 3:30 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Should I refinance to consolidate loans?
Posted by hazeleyes33
Posted by Beth1210
I would assume the majority of the money is on the first mortgage at 5.25%
then it's really not worth it- for one- you will be paying off the credit card for 30 years- the amount of interest will be insane
and it's really only worth it to re-fi when the rate is a full point lower then your current rate
I was actually thinking of only 20 years and when I calculated it, it would be over $200 savings per month (if I am figuring it out right-lol!!) which would help us.
I don't know though-thanks for your input :)
20 years would prob be better
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| Posted 1/16/09 3:46 PM |
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hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
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Re: Should I refinance to consolidate loans?
Posted by Beth1210
Posted by hazeleyes33
Posted by Beth1210
I would assume the majority of the money is on the first mortgage at 5.25%
then it's really not worth it- for one- you will be paying off the credit card for 30 years- the amount of interest will be insane
and it's really only worth it to re-fi when the rate is a full point lower then your current rate
I was actually thinking of only 20 years and when I calculated it, it would be over $200 savings per month (if I am figuring it out right-lol!!) which would help us.
I don't know though-thanks for your input :)
20 years would prob be better
I think so too. Our mortgage is at 30 years (down to 25 now) and our home equity is 20 years (down to 19 years now).
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| Posted 1/16/09 3:48 PM |
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