No. of Recommendations: 3
aoeuid,

You wrote, The thought of re-setting the time clock back to ZERO . . . is not very appealing. However, if I can re-fi with a 15 year and still pay pretty much what I am paying on mortgage number 1, then that would be a good deal. But, I don't know if I can do that and I guess the only way to find out is to get off my butt and go start talking to some credit unions.

First, this "time clock" is arbitrary. A 30 year mortgage gets paid off in 30 years because that what the minimum payment results in. You don't have make minimum payments. (Though be careful about the terms of any mortgage with a prepayment penalty.) Also some lenders have 20 year fixed rate products. You'd have to ask.

You write about talking to a credit union. That might be a place to start; but personally I'd talk to an independent mortgage broker. A credit union is one lender. A broker deals with lots of lenders and not all lenders have the same requirements.

With that said, I'd still assume the broker will turn you away. Lending standards have been fairly tight since the mortgage crisis and even if you have good credit, your debt to income ratio will make you unappealing to many lenders.

Also, get advice without actually filing an application. If you submit an application, you'll incur costs and they'll do a hard inquiry on your credit report. You don't want to go there until you're pretty sure you can actually get a loan at a better rate than what you currently have.

BTW, other people are focusing on you lowering current expenses. I agree with that. But your mortgage payment is one of those expenses and keeping it low is a good idea too. However, you still have to work the other issues, so don't let yourself get too distracted by the idea of a refi. And certainly don't go in thinking a refi is going to fix your other problems. A refi will only address one problem - and it's probably not your biggest one.

- Joel
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement