Posted on: 06th May, 2013 07:33 am
thinking about refinancing for betterninterest rate. currently ours is just over 5%. our morgage was for 88,000. we got the loan in 2009. we have 18,000 left. i was thinking if we refinance to a 30 year but continue to make same payment now we could py it off faster. my husbamd thinks we should do a 15. is one better than the other or should we just leave it be?
Depends on the loan fees. Some banks are paying 100% of the homeowners fees, including the appraisal, if they've been a good customer. Check with your current Lender first, and ask if they'll give you a lower interest rate, and pay all your fees.
My recommendation is if you have more than enough income, to pay for the 15 year loan, and you would have enough funds to pay it? if a catastrophe would happen or if one of you lost your income (would you still afford the 15 year)... If it seems tight, as you may never know what the future has in store, you may go for the 30 year, make the 15 year payment, do bi weekley payments and send in more principal, you can accomplish the same result, but if money gets tight, you can fall back to the 30 year, lower payment!!!
