FundRobot » Pension Funds » Financed a $200K HELICO and will be called in 9/2015. Should refinance @fixed rate?

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Default financed a $200k helico and will be called in 9/2015. should refinance @fixed rate

Paying $850../month and considering refinancing @ a fixed rate for 20 yrs. 65 years old on Soc. Sec but have not tapped into my pension yet. Should I refinance the HELICO before it is called and try to get a low fixed rate (3-4%) for a 20 year term? My wife still works and I bring in social security plus $8,000 gross income from part time work as a landscaper. Job opportunities for 65 year olds don't esist!

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Default financed a $200k helico and will be called in 9/2015. should refinance @fixed rate

You absolutely should do this if you can swing the financing. Who knows what interest rates will be in 9/2015 and if you'll even be able to get the financing then so your real choice is refinance now (again, if you can swing the financing) or possibly have to sell the house when the loan comes due (since you might not be able to swing the financing then) Option 3 is paying off the 200K with cash or other assets when it comes do but I'm guessing you don't have the 200K to do this.
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Default financed a $200k helico and will be called in 9/2015. should refinance @fixed rate

You most definitely don't want to wait to the last minute to deal with your HELOC and be required to pay off the entire $200,000 at one shot. This is true unless you are sure that you are going to sell the house or have sufficient funds to pay-off the loan.

I recommend that you shop around for the best terms that you can qualify for. It is a great idea to take the mortgage for the shortest possible period, make sure that the monthly payment is affordable over the long run.For example, a 20-year Fixed Rate Mortgage at 4%, would have a monthly Principal and Interest payment of $1212. (A 30-year FRM at 4.5% would be $1013).
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