Posted on: 12th Feb, 2012 01:19 pm
I had an original mortgage of 304,000 for 30-yr fixed at 5.125%. I am 8 years into my payments now and my current mortgage company is offering me a 15-yr fixed at 3.375%. I have been making 13 payments per year and my outstanding balance is 256,000. The value of my current home is estimated at 330,000.
Should I consider refinancing?
Should I consider refinancing?
To pay off $256,000 in 15 years with the current rate of 5.125% you would voluntarily pay $2,041.14 per monthly in principal and interest.
To pay of $256,000 at 3.375% is a monthly payment of $1,814.43 and over 180 months you pay $326,405
By refinancing, you save $40,809 over 15 years.
Certainly worthwhile doing and the monthly required payment is only $21 more than you pay now.
To pay of $256,000 at 3.375% is a monthly payment of $1,814.43 and over 180 months you pay $326,405
By refinancing, you save $40,809 over 15 years.
Certainly worthwhile doing and the monthly required payment is only $21 more than you pay now.
The reality is that there is more that goes into the equation than what is listed. Things like wanting to use extract idle equity for investments or added liquidity, maybe even seizing opportunities to expand your real estate portfolio during this downturn. There are also times when refinancing may look right on paper, but really isn't in your best interests. :idea: