Any Mortgage Gurus out there?

[pjalst]

The question is, would it be benificial for me to refinace or not?

I purchaced my home 7 years ago using a secured VA loan(this minimizes the cost), at a 5.5% fixed rate. The rates are currently fluctuating between low to mid 4's. I have about $40K-$50K worth of equity(depending on the apraisal). I plan to relocate to another state in 2-3 years.

I would like to reduce my monthly payments so I talked to a Mortage consultant at my bank who gave me the following options:

1. 30 year Fixed rate
2. 30 year fixed rate with bi weekly payments(plus a $75-$100 extra payments)
3. 15 year fixed rate

the 15 year fixed keeps my monthly payments about the same, but shortens the term.

Any suggestions or comments are welcomed

[bleach168]

If you're planning on moving in 2-3 years, you probably shouldn't refinance. It usually takes at least that long to make back the money you spend on refinancing fees.

[pjalst]

If you're planning on moving in 2-3 years, you probably shouldn't refinance. It usually takes at least that long to make back the money you spend on refinancing fees.

Because of the type of VA loan I have. My cost will be close to nothing. I won't need and appraisal which will save me $450 and I qualify for CEMA which will save me $1270 on the NY Tranfer tax.

[RugbyD]

With no closing costs to recover I would go with the 30yr fixed and only do monthly payments. Use the extra savings to 1) pay down any debt you may have that is at a higher rate or 2) invest in something relatively safe with a higher than 5% expected yield. I would suggest closed-end floating-rate funds that hold high yield senior secured bank loans, which will spare you the coming price collapse in bonds when rates rise, or TIPS if they are yielding enough.

[StlSluggers]

invest in something relatively safe with a higher than 5% expected yield.

There are things like that out there now???

[Art Vandelay]

invest in something relatively safe with a higher than 5% expected yield.

There are things like that out there now???

Gold! I know this, because I've seen and heard the commercials.

[RugbyD]

invest in something relatively safe with a higher than 5% expected yield.

There are things like that out there now???

I guess 'relatively' is a relative term in itself

[pjalst]

The question is, would it be benificial for me to refinace or not?

I purchaced my home 7 years ago using a secured VA loan(this minimizes the cost), at a 5.5% fixed rate. The rates are currently fluctuating between low to mid 4's. I have about $40K-$50K worth of equity(depending on the apraisal). I plan to relocate to another state in 2-3 years.

I would like to reduce my monthly payments so I talked to a Mortage consultant at my bank who gave me the following options:

1. 30 year Fixed rate
2. 30 year fixed rate with bi weekly payments(plus a $75-$100 extra payments)
3. 15 year fixed rate

the 15 year fixed keeps my monthly payments about the same, but shortens the term.

Any suggestions or comments are welcomed

I just got another option from the consultant:

4. Since I'll be moving in 2-3 years, A ARM with a fixed rate for 5yrs(currently around 3.5%).

[StlSluggers]

As long as you are sure you're moving, that's almost certainly the best deal.

And then Rugby's mess...