Posted on: 22nd Jun, 2011 04:09 pm
I have a mortgage at 6.3% and a balance of 95,000 dollars on it. I want to return to school ( have only 2 years of education left-rest paid for in cash already)- should I pay a higher monthly payment or do a refi?
Yes your rate is alot higher, possibly by 2 whole points, but you do not owe a ton of money, and if you refi you are starting the term over again. If you add more each month to principle, you will pay off sooner. If you do bi-weekly payments, you will pay off sooner. You can also add a payment each year to the mortgage which if you do all these things, you can knock off 7-10 years of payments...