Posted on: 22nd Oct, 2010 08:09 am
looking for some much needed advice.
current mortage:
$118,000
6.625%
30 year interest only.
year 3 of 30
645 monthly payment (no escrow, no insurance as i pay them seperately)
refi mortage
$118,000 refi
$9,000 all closing fees
126,000 (new balance)
4.375%
30 year fixed
$950 monthly payment (escrow)
i did some math and i know that my current monthly payment is low but if i add the property taxes and insurance it would add up to around $950 a month.
so basically i would be paying the same monthly note to refi but will be adding around $9,000 to the principle but i would be getting rid of the interest only part and will actually start paying on the principle.
i don't plan on moving anytime soon but mabe within the next 5-8 years.
should i refinance? any thoughts would be great.
current mortage:
$118,000
6.625%
30 year interest only.
year 3 of 30
645 monthly payment (no escrow, no insurance as i pay them seperately)
refi mortage
$118,000 refi
$9,000 all closing fees
126,000 (new balance)
4.375%
30 year fixed
$950 monthly payment (escrow)
i did some math and i know that my current monthly payment is low but if i add the property taxes and insurance it would add up to around $950 a month.
so basically i would be paying the same monthly note to refi but will be adding around $9,000 to the principle but i would be getting rid of the interest only part and will actually start paying on the principle.
i don't plan on moving anytime soon but mabe within the next 5-8 years.
should i refinance? any thoughts would be great.
Yes...do it.
Agreed!
