Would you....(financial home/mortgage advice?)

[Mattemma]

Could you just pay extra on the principal for the heat pump loan?

With 2 years to sell time you would not make up for the refi costs. Don't do anything in the house except painting rooms when it comes time to sell. Very few people are making a profit on their home.Most are lucky if they can sell for the amount they bought it for.

We refinanced our home from a 30 to a 15 year.Ofcourse the closing costs were bigger than we were told,and the interest rate wasn't all that better. Would have been better to just pay extra on the principal.

Best wishes whatever you decided to do!

 

[WingingIt]

I wouldn't either, based on the financial info (small savings versus added cost and new loan length and potentially selling shortly) you gave. I think you are making the right move to walk away from this, at least for now. If you decide to stay in the house and not sell in 2013, then you can look at it later. See if you can send in even $5 extra on that small loan to get rid of it earlier (without penalties, of course, or don't do it). Every little bit does add up.

Just for future info, our mortgage is with Wells Fargo. We had our loan with another company first, they sold it to WF and we refinanced with WF about a year after that. They were VERY easy to work with on the refinance and it actually closed on time, which shocked me. lol. Now, they have misapplied a payment once, but they did fix it and fix the interest and stuff to reflect when they SHOULD have applied it, so they did fix it and apologize. A lot depends on your account person and the customer service folks.