This is only a rough suggestion because do not know what your closing costs would be to refinance and do not know if your mortgage started in 2001 in January or May or Seprember or December of some other month.
Presently, your required monthly principal and interest payment is $764.80 and you completed ten years of that mortgage, so, the present balance is about $102,579 and there are 20 years left.
Over the remaining 240 months you will pay $248,491.
If you refinance to a new 20 year mortgage at 5.250% at $125,000 (cover closing costs?), the monthly P&I would be $707.53 and over the 240 months you will pay $169,808.
You save $13,744 over 20 years or $687 a year.
Break even on costs is about 45 months.
Refinancing under those conditoons is your personal choice. You do not save a bundle, but, if you live there five years or longer, you do not lose anything and after that you save $77 a month every month you are there.
If you qualify for 15 fixed at 4.5% or lesser rate, do that. Monthly P&I payment about $956.24. If payments too high, do 20 fixed at 5.250% or less or not. Savings on 20 year loan ok, but, not enough for me to suggest definitely doing it.
Presently, your required monthly principal and interest payment is $764.80 and you completed ten years of that mortgage, so, the present balance is about $102,579 and there are 20 years left.
Over the remaining 240 months you will pay $248,491.
If you refinance to a new 20 year mortgage at 5.250% at $125,000 (cover closing costs?), the monthly P&I would be $707.53 and over the 240 months you will pay $169,808.
You save $13,744 over 20 years or $687 a year.
Break even on costs is about 45 months.
Refinancing under those conditoons is your personal choice. You do not save a bundle, but, if you live there five years or longer, you do not lose anything and after that you save $77 a month every month you are there.
If you qualify for 15 fixed at 4.5% or lesser rate, do that. Monthly P&I payment about $956.24. If payments too high, do 20 fixed at 5.250% or less or not. Savings on 20 year loan ok, but, not enough for me to suggest definitely doing it.
barbaragrote, interest paid is nothing but a past expense. Where a refinance often takes the borrower backward is when they refinance into a longer term than they have left on the current loan, such as if you have 20 years left to pay and you take out a new 30 year loan and start the amortization clock all over again. This adds years to the loan along with more interest that you will end up paying even if you get a lower interest rate and monthly payment.
To be more exact on what you would save/gain by refinancing you need to provide more information. What state are you in and when exactly did you get your current loan (month/year) what is the current estimated value of your home and how is your credit and what are your credit score(s)?
I should add that most people who think they have their credit scores by getting them somewhere online are usually ending up with "educational" scores which differ from what mortgage lenders use. Unless you are pretty certain you have top credit/scores then it may pay to at least order your Equifax FICO score at myfico. Only other way would be to authorize a lender to pull your credit report/scores which they may do if they are hoping to get your business.
Checking some online lenders today I see you could probably get a 20 year fixed rate loan with an interest rate of 5.25% with little or no out of pocket cost for the non-recurring fees. This would lower your monthly payment to around $690 a month based on a loan amount of around $102,500 if this is in fact about what you currently owe.
Another option would be to go for a 15 year fixed rate loan and a 4.75% rate with a monthly payment of around $800 a month - a little more than you are paying now, if it is still affordable.
In any case, barring some yet to be known information and/or credit problems, I would say you should definitely consider doing a refinance while interest rates are still at the low levels they are.
BTW I think John meant to say $105,000 and not $125,000 in his post.
To be more exact on what you would save/gain by refinancing you need to provide more information. What state are you in and when exactly did you get your current loan (month/year) what is the current estimated value of your home and how is your credit and what are your credit score(s)?
I should add that most people who think they have their credit scores by getting them somewhere online are usually ending up with "educational" scores which differ from what mortgage lenders use. Unless you are pretty certain you have top credit/scores then it may pay to at least order your Equifax FICO score at myfico. Only other way would be to authorize a lender to pull your credit report/scores which they may do if they are hoping to get your business.
Checking some online lenders today I see you could probably get a 20 year fixed rate loan with an interest rate of 5.25% with little or no out of pocket cost for the non-recurring fees. This would lower your monthly payment to around $690 a month based on a loan amount of around $102,500 if this is in fact about what you currently owe.
Another option would be to go for a 15 year fixed rate loan and a 4.75% rate with a monthly payment of around $800 a month - a little more than you are paying now, if it is still affordable.
In any case, barring some yet to be known information and/or credit problems, I would say you should definitely consider doing a refinance while interest rates are still at the low levels they are.
BTW I think John meant to say $105,000 and not $125,000 in his post.
jmgilly, thanks, I did mean refinance at $105,000, not $125,000