UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: XWordPhile Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308519  
Subject: Re: For Wells Fargo Mortgage Holders Date: 3/10/2003 12:05 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Thanks for the perspective...I'll show this post to DH tonight.

I hope you understand what you're getting into there. ING Direct only offers ARMs -- Adjustable Rate Mortages. Specifically, they offer a product called a 5/1 ARM. Its rate is fixed for 5 years, then changes once a year based on some rate index. The term is actually 30 years.

We are aware of this. We don't plan on staying in this house for five years. So why refinance? A couple reasons...we haven't done it before, so our rate is 7.85% (I think) and my job is shaky, so we're trying to find ways to save money, and refinancing will save us from 200-300 per month. (we had planned on moving this fall, but my job insecurity has pushed that back--DH isn't bringing in any income at the moment, so this is all on my paycheck. And we won't lose the house if I lose my job--we've got no other debt, healthy e-fund, etc.)

The other alternative we looked at was refinancing with the bank who holds our HELOC (different from our 1st mortgage). They'll roll the HELOC into our refinancing. This isn't an ARM, but a fixed mortgage. The downside to this is that the HELOC was used to finance my husband's business, so rolling it into our mortgage will further muddle the line between the personal and business pots of money. (The biz has now reached the break-even point, so further withrawals from the HELOC should be unnecessary.) The closing costs here are a bit higher than with ING; that's something we looked at as well.

I admit I know little about mortgages and refinancing. Based on this additional information, do you have any further thoughts?

Ellen
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Post of the Day:
Value Hounds

Kate Spade's Wild Ride
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 "#1 Media Company to Work For" (BusinessInsider 2011)! 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