Posted on: 01st Feb, 2010 01:08 pm
I OWE $120,000 ON A 30 YRS AT 5.875% AND HAVE BEEN IN MY HOME 7YRS ...PLAN ON STAYING HERE AT LEAST 20 YRS. I CAN REFINACE 15 YRS AT 4.25% BUT WHAT IF I JUST START PAYING $200 MORE A MONTH TO THE PRINCIPAL NOW? AND SAVE ON THE CLOSING COSTS ......IS THAT A BETTER IDEA? WHAT'S THE BETTER OPTION?
Yep. Save the loan fees and pay more towards the principle.