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Guest

We have 124,000 left on a 30 year mortgage. Currently 22 years left to pay. We pay biweekly (and pay 200 extra a month) the rate is 5.75. So it has dropped the amount dramatically through the years. Should we refinance at a 15 year, 3.8 interest rate or just keep paying the extra on the original loan. We would pay the same extra 200 on the new loan amount also. The closing costs might be around 3,000. Not sure yet. Am I just fooling myself into thinking lower rate will get it paid off quicker and this is just a waste of time??

jveenstra · Posted: Mon Jul 26, 2010 10:09 am Post subject: Refinance

If you refinance to 15 years at 3.875% and pay $200 extra monthly, you will save about $24,000.

That is a rough figure. Would need more information to be more exact.
1. Do you now pay $200 month extra now on top of the extra biweekly payment?
2. Exactly how many months are left on current loan? 264 months or more??? Whnen you say you have 22 years left, I am guessing you are rounding that off.
3. On the current loan, what was the original starting mortgage balance?

Guest

1. Yes, we are paying the extra 200 a month currently. Started doing that a few months into the mortgage, the biweekly with the extra.
2. We are in year 7 of the 30 year mortgage. Sorry. So it would be 276 months left.
3. The original was 174,000

jveenstra · Posted: Tue Jul 27, 2010 6:35 am Post subject: Refinance

Thanks for providing the additional information.

The present loan will be done in about 128 months.

A new loan of $127,000 (roll in the $3,000 closing costs) 15 fixed at 3.875% and you pay $200 extra, will pay off in 140 months. The months are 12 longer to pay off, but, the monthly payment is less, so, if you refinance you take longer to pay off but save about $8,000.

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