ideas how to reduce mortgage payment w/o refinancing?

Looking for any ideas on how to reduce monthly payments on a mortgage
that's mostly paid up ($90k principal left), to pay off in 10-15 years
without the cost of refinancing. Things I've looked at so far (and
disadvantages of each):

1. HELOC - variable rate, likely rise over next 7-10 years (up to
8-10% range?)

2. Home equity fixed rate loan - rate quotes now are 7-9%, much higher
than a refinance or a HELOC (is that typically the case?)

3. Refinance - closing costs; also wary of bank appraisal (house could
use some paint, minor repairs that I just ignore) but maybe not a
concern since LTV of about 0.2 is so low.

Any other suggestions out in left field? Thanks.

On Feb 2, 10:44*am, dmill...@yahoo.com wrote:
> Looking for any ideas on how to reduce monthly payments on a mortgage
> that's mostly paid up ($90k principal left), to pay off in 10-15 years
> without the cost of refinancing. *Things I've looked at so far (and
> disadvantages of each):


> 3. Refinance - closing costs; also wary of bank appraisal (house could
> use some paint, minor repairs that I just ignore) but maybe not a
> concern since LTV of about 0.2 is so low.

What is your current interest rate?

If your new loan is at a higher rate, you will lose financially.

Are you willing to sell your house and rent or buy a smaller house?

If you refinance, I think a larger loan could be used to increase your
cash position.

--
Ron

On Feb 2, 11:44*am, dmill...@yahoo.com wrote:
> 3. Refinance - closing costs; also wary of bank appraisal

You could refinance just the balance at your local credit union
instead of the bank. I checked my credit union's rate just now - on a
15 year fixed, it is 3.125% with no points, which is much better than
their HELOC rate.

On 2/4/12 12:07 PM, bo peep wrote:
> On Feb 2, 11:44 am, dmill...@yahoo.com wrote:
>> 3. Refinance - closing costs; also wary of bank appraisal
>
> You could refinance just the balance at your local credit union
> instead of the bank. I checked my credit union's rate just now - on a
> 15 year fixed, it is 3.125% with no points, which is much better than
> their HELOC rate.

OP never mentioned his current rate.
When I talk to people with 10 years left, but at 7%, I remark that at 4%
or less, the 3% savings would pay for some closing costs in a few months
depending on balance.
Many banks have a low or no closing cost mortgage at a slightly higher
rate. It's easy math when you have all the numbers.

On Feb 2, 12:44*pm, dmill...@yahoo.com wrote:
> Looking for any ideas on how to reduce monthly payments on a mortgage
> that's mostly paid up ($90k principal left), to pay off in 10-15 years
> without the cost of refinancing. *Things I've looked at so far (and
> disadvantages of each):
>
> 1. HELOC - variable rate, likely rise over next 7-10 years (up to
> 8-10% range?)
>
> 2. Home equity fixed rate loan - rate quotes now are 7-9%, much higher
> than a refinance or a HELOC (is that typically the case?)
>
> 3. Refinance - closing costs; also wary of bank appraisal (house could
> use some paint, minor repairs that I just ignore) but maybe not a
> concern since LTV of about 0.2 is so low.
>
> Any other suggestions out in left field? *Thanks.

Go to your current mortgage holder, tell them you are considering
closing out the loan and ask them to instead reduce your current rate
by say 2 points.

responding to
http://www.beansmart.com/financial/i...ing-17614-.htm
DA wrote:

dmill945 wrote:


> Looking for any ideas on how to reduce monthly payments on a mortgage
> that's mostly paid up ($90k principal left), to pay off in 10-15 years
> without the cost of refinancing.

It's still a refinancing but I have seen ING Direct advertise "low closing
costs" mortgages where they claim savings by not paying at least part of
the normal closing costs and points. Their 7/1 ARM is 3.396% APR and,
although does not cover the entire 10 yr period you want, it *almost* gets
you there. There is some small print there, too, so you'd have to contact
them to see if it's really all that great, but sounds pretty good on the
ad.

I would think the appraisal would not be such a big deal in refinancing,
at least as far as you get it appraised at 20% over the amount you borrow
to eliminate the PMI insurance costs.

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responding to
http://www.beansmart.com/financial/i...ing-17614-.htm
DA wrote:
FranksPlace2 wrote:

> Go to your current mortgage holder, tell them you are considering
> closing out the loan and ask them to instead reduce your current rate
> by say 2 points.

I would think that by now they have already sold the mortgage higher up
the chain and are only involved in servicing it (collecting your
payments). In other words, they would love to do something to prevent
losing you as a customer but I don't think they can actually do anything
about it 'cause it's not even their money anymore.

I'm pretty sure that's how it works with smaller banks but couple years
ago I've also attempted to do just what you suggested with Wells Fargo.
Despite being one of the few big ones still standing, they simply said:
"go ahead". So I did and refinanced with a small local bank.

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|_/|
| @ @ Woof!
| < > _
| _/------____ ((| |))
| `--' |
____|_ ___| |___.'
/_/_____/____/_______|