Posted on: 23rd Mar, 2010 10:04 pm
we have a balance of $120,000 on our mortgage. we have about 7 years left and our monthly payment is about $1,400. we would like to take advantage of the low interest rate but also want to maintain our terms of 7 years or less. is this attainable?
it has been suggested to us to refinance with the 15 years fixed rate and continue to make the same monthly payment of $1,400. is there a tool that we could use to calculate the number of months until the balance is $0.00?
thank you!
kay
it has been suggested to us to refinance with the 15 years fixed rate and continue to make the same monthly payment of $1,400. is there a tool that we could use to calculate the number of months until the balance is $0.00?
thank you!
kay
You can refinance your mortgage for a 15 year term with fixed rates and take advantage of the lower rates. You can check out the given FRM calculator in order to get the number of months until your balance is zero:
http://www.mortgagefit.com/calculators/simple.html
http://www.mortgagefit.com/calculators/simple.html
Hi Cnkreis,
I really don't think it makes sense for you to refinance at this point and here is why.
You have 7 years left and your home will paid off. Right now the majority of your monthly payment is going to principle but if you refinance to 15 year fixed you're going to start all over with paying more interest than principle.
The second issue is closing costs, how much are you're going to add to your current loan balance?
The only thing that I can think of that would make a refinance make sense in your case is if you're doing it for tax purposes. Right now your interest deduction is probably pretty low.
I really don't think it makes sense for you to refinance at this point and here is why.
You have 7 years left and your home will paid off. Right now the majority of your monthly payment is going to principle but if you refinance to 15 year fixed you're going to start all over with paying more interest than principle.
The second issue is closing costs, how much are you're going to add to your current loan balance?
The only thing that I can think of that would make a refinance make sense in your case is if you're doing it for tax purposes. Right now your interest deduction is probably pretty low.