Posted on: 25th Jul, 2010 11:31 pm
does it make sense to refinance if interest rate is 1 percent less or 144 dollars less and i still have 26 years left on the mortgage i am single and have 2 teenagers going to college in 3 years. i dont plan to move been in home for 15 years
You're the only one that can truly answer that question.
take your hard costs(not prepaid items) of the loan and divide by the monthly savings.
The result will be the number of months it takes to 'breakeven'
It is certainly worth it if you stay beyond that number of months.
For example: Lets say your costs are $4000 to do the loan.
Then $4000/144 = 28 months.
Stay beyond 28 months and you are a winner.
Also consider a 20yr term. You may like that option... you will save a ton in inerest
The result will be the number of months it takes to 'breakeven'
It is certainly worth it if you stay beyond that number of months.
For example: Lets say your costs are $4000 to do the loan.
Then $4000/144 = 28 months.
Stay beyond 28 months and you are a winner.
Also consider a 20yr term. You may like that option... you will save a ton in inerest
