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Refinance or extra payments?

Posted on: 18th Nov, 2010 11:14 am
[font=tahoma:26c21884c1]our original loan is $183,000 (after large down payment) reduced to $160,000 after 7 years of 30 year at 5,125%. it looks like we could refinance around 1% lower here in ga. i am not sure about closing costs yet. monthly is about $1100.
would you recommend to do it or rather add extra payments to existing loan? another option is to refinance to 15 year?
thank you so much for your advice.[/font:26c21884c1]
Welcome Alice,

If you have equity in your property, then you can refinance the mortgage and go for 15 year fixed rate loan. This will help you in paying off the loan faster and become debt free. You should contact your local lenders and check out the closing costs. If you can afford to pay the closing costs, then it will be a good option to refinance the existing mortgage.
Posted on: 18th Nov, 2010 07:16 pm
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