Tell me what you think

[n2mark]

I applied to refinance my house at 1.5% for five years, then I can go to 5.25% or refinance at 1.5% again. Here's the deal, I know my house will never be paid off in my lifetime, the amount paid off is nil. If I refinance, I'm only paying off the interest leaving me almost $800.00 extra a month. This is money I could put in savings or get the repair work done around my house. If I want to sell my house today I couldn't because of needing a new roof and other repairs. If I sell my house within the next few years I can still make a profit, there is enough equity. Why pay the principle if my house will never be paid off unless I win a multimillion dollar lottery (I'm 62). I can pay off all my bills, car and credit cards and almost be debt free except for the house.

[flamin lib]

1. Check with your city and county for

grants and programs to repair your home. My city offers a one time grant of up to $10,000 for low income home owners to make necessary repairs.

Worst thing that can happen is they tell you no.

[n2mark]

2. I am not considered low income

I'm not high income either, just in the middle.

[Kingshakabobo]

3. I think you should read your disclosures a little closer.

There is no such thing as a 1.5% rate for five years. The 5/1 libor ARM is currently around 4.75%. Fixed for 5 years and adjustable thereafter at LIBOR plus 2.25%. You can't borrow money for 1.5%. Libor is around 2% and the 10 year T-bill is around 4%.

If you do have 1.5% it sounds like a NEGATIVE AMORTIZATION loan perhaps with an initial rate of 1.5%. Meaning, if you make only the interest only payment, based on 1.5%, the difference will be tacked on to your principle balance causing negative amortization.

These deals are touted heavily on TV/radio/internet.

Just my 2 cents. I'm a mortgage broker/banker.