Posted on: 22nd Jul, 2009 09:07 am
should i refinance from a 6.0%, 30 yr (29 left) to a 5.0%, 25 yr if it will add approx. $5000 to a $352,000 balance? monthly payments will be the same and my calculations show i'll have less principle left after about 1 yr of payments.
you can go ahead. if you want to go for 30 yrs, your monthly payment will be reduced by $200 approx.
It is a good deal
It is a good deal
hello, it depends on how long you want to live in the house. do you mean the $5000 is the cost for the refinance? if it is, if you want to live in the house for a long time, obviously refinance is not a bad option for you. For example, if you are going to live in till you pay out the mortgage, say, 25years later, you pay no more than 20 bucks a month for the refinance fee(5000/25/12)...But you pay much less interest and accumulate equity much faster and pay your mortgage in25 years rather than30years. the refinance fee should be much less than the interest you saved from refinance. please see the refinance calculator, that will give you a better idea of your case. Hope that helps!