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jobrund
 Guest
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Posted: Fri Jul 03, 2009 8:46 am Post subject: Refinance or Keep paying extra |
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I'm 63 months into a $300K, 30 year 5.25% APR mortgage. I've been making an extra payment principal equal to 50% of my monthly payment, planning on continuing that and therefore have about 9 years left on my mortgage. Was thinking about refinancing to a 10 or 15 year to get a lower rate. Required monthly payment would only go up $100 per mo. on a 15 year (4.8% APR) but I'd keep paying the same absolute amount each month. Is it worth it to refinance to a 10 or 15yr or just keep the 30 and making the extra 50% each month
Thanks. |
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jenkin7

Joined: 04 Jun 2007
Posts: 3429 Location: Hawaii
514.13 Dollars($)
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Posted: Sat Jul 04, 2009 2:22 am Post subject: |
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Hi jobrund,
You said that if you keep paying extra money like the way you have been doing, you will pay off the loan in 9 years. Right? If you can pay it off in 9 years, I don't think there is any need to refinance into a 15 year loan. A refinance would mean you will have to incur closing costs. I think if you keep the money with you and use it to make the current payments, it will be much better. Thus if you can afford to make the extra payments, in my opinion it is better for you to just keep making the payments and pay off the loan as early as possible. |
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gmakerley
 Community Mentor

Joined: 09 Nov 2007
Posts: 7447 Location: bloomfield, ct
70.06 Dollars($)
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Posted: Mon Jul 06, 2009 8:22 am Post subject: |
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i am in agreement with jenkin. the costs of refinancing, i think, would be higher than would be beneficial for someone who, like you, is paying additional principal in the manner that you do. _________________ George M. Akerley
Loan Consultant
860-221-5044 |
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eric2

Joined: 28 May 2009
Posts: 20
6.32 Dollars($)
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Posted: Mon Jul 06, 2009 12:27 pm Post subject: |
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| At first glance there is no need to refinance. |
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