Mortgage refinance - what are the total costs

[Telugodura456]

5 year ARM theesukoni ...tharvatha re-finance chesukuntam no brainer kadha.

then why dont everyone do it ? what are the costs to it ?

[Telugodura456]

calling all mortgage experts.

[pandu123b]

closing cost’s every time you refinance it.

what if rates are higher when your initial term is done?

so fixed is always a piece of mind & plan financials accordingly, arm has that unknown factor 

[Thokkalee]

Now arm loans and 30 yr fixed loans don’t have much of a difference.. it doesn’t make much of a dent in the monthly payments… 

[csrcsr]

25 minutes ago, Telugodura456 said:

5 year ARM theesukoni ...tharvatha re-finance chesukuntam no brainer kadha.

then why dont everyone do it ? what are the costs to it ?

current market lo ARM and 30 yr fixed ki pedda diff ledu Anna 

during the covid time as rates were lo people secured lowest rate possible for 30 years

closing costs Lender gadu app fee, title fee, edo attorney and insurance and appraisal etc evo fees you cannot avoid 

plus any loan first few years your  payment goes majority to interest , so after 5 years you start allover again ammortization period impact will be severe

 

[csrcsr]

Also you can you this calculator 

https://www.bankrate.com/mortgages/compare-arm-or-fixed-rate-calculator/

[IamBhagatSingh]

46 minutes ago, csrcsr said:

current market lo ARM and 30 yr fixed ki pedda diff ledu Anna 

during the covid time as rates were lo people secured lowest rate possible for 30 years

closing costs Lender gadu app fee, title fee, edo attorney and insurance and appraisal etc evo fees you cannot avoid 

plus any loan first few years your  payment goes majority to interest , so after 5 years you start allover again ammortization period impact will be severe

 

Idi correct kadu bhayya. It doesn't matter even if you refinance. You will end up paying the same principal and interest to the new bank. 

[csrcsr]

Just now, IamBhagatSingh said:

Idi correct kadu bhayya. It doesn't matter even if you refinance. You will end up paying the same principal and interest to the new bank. 

My point is same interest but if yiu refi after 3 years initial ga unna high interest it will start again yes mortgage will be the initial home price minus the principal paid but initial years lo your monthly payment majority goes to interest check the calculator above

[Telugodura456]

12 minutes ago, IamBhagatSingh said:

Idi correct kadu bhayya. It doesn't matter even if you refinance. You will end up paying the same principal and interest to the new bank. 

THis is the real question.  let me say i took arm 3% for first 5 years and then refinanced for 5% for next 25 years. THen for next 25 years will i pay the same interest as someone who has 5% mortgage from year 5 to year 30 or no ?

[IamBhagatSingh]

16 minutes ago, csrcsr said:

My point is same interest but if yiu refi after 3 years initial ga unna high interest it will start again yes mortgage will be the initial home price minus the principal paid but initial years lo your monthly payment majority goes to interest check the calculator above

Not true bro. I did the calculation. You need to consider the pending amount (which is your new loan amount), when giving input for the amortization calculator. You will then know that you are going to pay the same interest on the 1st month of new bank, which is equal to the same interest amount which you would have paid to the current bank next month if you dint refinance 

[Gorantlamdhav]

6 minutes ago, Telugodura456 said:

THis is the real question.  let me say i took arm 3% for first 5 years and then refinanced for 5% for next 25 years. THen for next 25 years will i pay the same interest as someone who has 5% mortgage from year 5 to year 30 or no ?

What is this logic? 
year 6 lets say you have 100k loan amount pending you will refi for that and choose term of 15 or 30 and pay monthly 

other guy will pay 6th 

[csrcsr]

39 minutes ago, IamBhagatSingh said:

Not true bro. I did the calculation. You need to consider the pending amount (which is your new loan amount), when giving input for the amortization calculator. You will then know that you are going to pay the same interest on the 1st month of new bank, which is equal to the same interest amount which you would have paid to the current bank next month if you dint refinance 

this is how I calculate Anna 

using this for 100k home , 20k downpayment loan assume 5 year arm 

60

$454

$73,968

$115

$21,222

$

principal balance will be 73, 968 at the end of 5 year cumulative interest you paid 21,222

now you refinanced you have 26 % equity and refinanced to same interest rate assuming your new loan starts with 74k

360

$505

$0

$502

$102,630

$0

interest you paid 102630 plus 21222

 

 

if you took same rate 30 year fixed an continued  you will only pay 110,951

360

$546

$0

$542

$110,951

$0

 

May be  I missing something here ???

 

 

https://www.usbank.com/home-loans/mortgage/mortgage-calculators/adjustable-rate-mortgage-calculator.html