Need help tonight re refi Dave or ??
I really need advice!!!!!My bank is allowing a lock-in on the same day the rate goes up by making an online application. I just started this process late last week, and already missed the lowest rate; today it went up again, and I need to make a decision on whether to pay one, two, or no points. History: I've been in my home for 6 3/4 years; current rate is 6.125 fixed 30 years on 1st and second, which is a complicated subsidized soft second that I really want to get out from under, as my payments in just a few years will be nearly $100. more per month than what I'm paying. Since I don't make a lot and do not receive cost of living increases, I'm concerned about retaining this mortgage which will become increasingly unaffordable as taxes rise. HOWEVER, it appears that I will have to payback i.e. roll into my refi the approx. $5,300. that I received in reduced payments on the soft 2nd since the inception of the loan. Then if I add points to the cost of the fees, I will be paying nearly what I took out for the orig. loan - despite making extra payments to principle for 2 or so years. I am single, mid-fifties, but didn't get into the full-time workforce until late in life. The pressure of having to make a decision tonight is driving me crazy, as I was expecting to have another day or two to spend researching...
Current rates 30 year (same as 20) 5% no points; 4.75% one point; 4.5% two points. My preference would be to move closer to one of my children, but without winning a lottery, unlikely in the next 4-5 years or maybe ever!
Thank you thank you!!!! Penny G.