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 kbissing
Joined: 27 Apr 2009
Posts: 1
1.41 Dollars($)
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 Posted: Mon Apr 27, 2009 7:12 am Post subject: Should I refinance or pay more towards original principal? |
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Should I refinance or pay more towards loan???
Our current rate is 5.375 on a 30 year note. we owe 280,000. Our monthly payment on at is 1679. (We have been paying 1800/month). We have an opportunity to refinance into a 15 year loan at 4.6 with 0 points. (We can afford the extra payment)
What makes sense? Should we stick with our original loan and just pay the amount ($2157) we would be paying on the 15 year note to the original note?
We plan on staying in the house for a very long time. |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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| Posted: Mon Apr 27, 2009 10:54 pm Post subject: |
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Hi kbissing,
Rates are quite low these days. So it is good option to refinance the loan at a lower rate. You have mentioned that you will be able to afford the extra payments after refinance. Thus, in my opinion refinancing the 30 year mortgage into a 15 year will be a good idea. Also if will help you in paying off the debts quite early and owning the house free and clear.
Thanks |
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pogonogo62
Joined: 19 May 2009
Posts: 3
2.09 Dollars($)
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| Posted: Tue May 19, 2009 12:27 pm Post subject: should I refinance? |
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| I have 24 years to go on a 30 year mortgage. My interest rate is 5.75. I can refinance at 4.5 with roughly 3500 in closing costs. Should I refinace or just start paying down principle. I am wondering if it will work out the same, and save my self the closing costs. I plan on staying in the house for atleast 5 more years but not the whole 24 years. I also plan on remodeling and renting it. My loan balance is 76, 300. |
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pogonogo62
Joined: 19 May 2009
Posts: 3
2.09 Dollars($)
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| Posted: Tue May 19, 2009 12:27 pm Post subject: should I refinance? |
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| I have 24 years to go on a 30 year mortgage. My interest rate is 5.75. I can refinance at 4.5 with roughly 3500 in closing costs on a 15 year loan. Should I refinace or just start paying down principle. I am wondering if it will work out the same, and save my self the closing costs. I plan on staying in the house for atleast 5 more years but not the whole 24 years. I also plan on remodeling and renting it. My loan balance is 76, 300. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7405
Location: bloomfield, ct
62.63 Dollars($)
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| Posted: Tue May 19, 2009 2:00 pm Post subject: |
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pogonogo i would think you'd be able to get an even lower rate with minimally more in costs...you'll still probably get your money back.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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