Selling/buying properties, new property found

[promiseacres]

Well right now we are going ahead and refinancing our current place, and keeping our eyes open. While it may not make the best finacing sense to purchase soon after refinancing we don't know that the right property will come along. We are probably going to be able to finance for a shorter loan therefore definitely ahead of the game. Feel rates aren't going to stay low forever and it's 1 1/2 to 2 % lower than our current rate. Might see about getting a pole building put up, but no concrete or finishing touches as a shop.

 

[Bruce]

What are they charging for points, loan origination fees, other costs and do you need to have a title search done? Those costs are what makes refinancing for a relatively short period of time financially inadvisable.

If you aren't sure you want a bigger payment, you can always get a loan for the length of the rest of your current loan and pay extra principal (it should be obvious but make sure you tell them it is for principal!) monthly. You will shorten the loan and pay less interest while retaining the ability to NOT pay the higher payment for a shorter loan if some financial needs rears its ugly head. If you can make the payment of a shorter duration loan every month, there is no difference in how much you pay total - unless they have lower rates for shorter duration loans. Gotta do the math.

 

[promiseacres]

Well.... still haven't done the application for refinancing.... in the meantime found another property. Major downfall is its 45 minute drive from husband's work.... 33! Acres. 17 tillable, 7 woods. Big barn, old farmhouse, some updates.... closer to our families.... just out of our price range.... Soooo want to see it. Not much info online, a fsbo.... do love our community BUT....