opinions 6.5 or 6.1

[rubyruby27]

I can refinace with BOA no cost, signuature only at 6.5 (current mortgage is with them) or I can refinance with 3rd Federal at 6.1 with 1200 closing cost and paperwork (not credit score driven).

I have 7.75 now on 154,000 and HELCO at prime for 71,000. We are paying 3000/mo. The house is valued at 650.000.

I wanted to do the PenFed 5.3%, 5/5 ARM and make double payments every 14 days (upto 3,000/mo) for 5 yrs which would have the majority of the house paid off in 5 yrs then refinance at the current rate at that time or no more than 7.3% on the remaining balance.---It doesn't appear I can do that since they are score driven.

Which is better BOA or 3rd Federal. I can't do 3rd Federal for a couple more months.

Thanks for any opinions.

[rubyruby27]

Just realized I posted this in the wrong forum.

[jlynn]

You have to amoritize it, and figure out long term which is cheaper.

[stargazer0725]

Ruby, if you finance $225k for 15 years, you get the following:

6.5%: $1960 payments + $1040 extra = $3,000
6.1%: $1910 payments + $1090 extra = $3,000

Total finance charge/interest outlay after 5 years:

6.5%: $54,112.09
6.1%: $50,157.44 plus $1,200 closing = $51,357.44

Looks like the better deal over 5 years, with the extra payments would be the 6.1 deal. It would save you over $2,700 over the next 5 years.

If you don't intend to refinance after 5 years, the 6.1 deal only gets better and better to the tune of about $4,000 in savings over 8 years it would take you to pay it off w/$3,000 payments.

[rubyruby27]

I was sure the 6.1 was better but with closing cost and the fact I can't do it for 3 more months didn't know if that was really mattered.

I am really pissed at BOA, I called them and said do not pull a credit report, I only want info, I checked my report and they pulled one from all 3. It didn't hurt my score or I don't think it did, but it pissed me off.

Thanks for the opinion.

[Hedwig]

Quote:

Originally Posted by rubyruby27 Just realized I posted this in the wrong forum.

I moved it to the mortgage forum for you.

[Qtip]

Boa, they are half retards; I applied for a home equity loan. They set me up with a dam line of credit and automatically deposited the money in the ban account. I did not notice all this for a month, trashed my scores that month Needless to say I returned their dam money.

[rubyruby27]

If I can find another company to go with I plan on calling them and tell them why I am moving my mortgage and bank accounts from them.

My other bank didn't pull just answered the questions I had. BOA is not high on my list, just need another avenue before I pull everything out.