Posted on: 26th Jun, 2009 06:31 am
i currently have balance of $130,000 on a 15 year mortgage. i have paid about 5.5 years now. i am paying about $2200 a month $930 (principal) + $530 (interest) + $740 (escrow). i need some lump sum of cash in the near future (eg. tuition for my kids). if i refinance now with the 30 yr term, the monthly payment will be reduced to $1200.
question: is it better to refinance the current mortgage with the 30 year term lowering the current payment and setting aside the difference (about $1000) in a cd or something?
question: is it better to refinance the current mortgage with the 30 year term lowering the current payment and setting aside the difference (about $1000) in a cd or something?
Hi jacobmpark
If you are planning to stay in the property for the next 8-10 years at least, then refinancing the property with a 30 year term will be a good option. You should also remember that while refinancing the mortgage, you will have to pay the closing costs which will be a lump sum amount. If you can afford that, then refinancing can be a good option for you.
Thanks.
If you are planning to stay in the property for the next 8-10 years at least, then refinancing the property with a 30 year term will be a good option. You should also remember that while refinancing the mortgage, you will have to pay the closing costs which will be a lump sum amount. If you can afford that, then refinancing can be a good option for you.
Thanks.
You may do that with a 30 year mortgage on a bi-weekly payment plan to avoid more interest. Do not expect your balance to change all that much for the next few years. I hope this helps...
