Posted on: 30th Nov, 2010 09:05 am
i currently have a mortgage that has a balance of $72,236.03, the original loan amt. was $85,600.00 and i purchased the home 8-13-04. the original interest rate is 6.125%, my total loan pym. is $785.09 ($150.65 principal, $369.47 interest & $264.97 escrow). i have paid extra principal payments before and the pay off date is now feb. 2031 which is 20 yrs. 11 mo. (as of nov. 5, 2010 payment), original payoff date would have been 9-2034. which would be better, to refinance to a 15 yr. loan @ say 4.125% plus pay all the closing costs & other fees required normally by banks or to pay an additional principal payment of $785.00 per month? thanks for your help! denise
Hi deniseodonnell,
You can go for a 15 year fixed rate mortgage and refinance your existing mortgage. This will help you in getting your property free and clear within 15 years time period. Moreover, if you stay in the property for a longer period of time, then you'll be able to offset the closing costs. Also, you can make extra payments toward your 15 year fixed rate mortgage and pay off the loan even faster.
Take care.
You can go for a 15 year fixed rate mortgage and refinance your existing mortgage. This will help you in getting your property free and clear within 15 years time period. Moreover, if you stay in the property for a longer period of time, then you'll be able to offset the closing costs. Also, you can make extra payments toward your 15 year fixed rate mortgage and pay off the loan even faster.
Take care.
If you pay $94.35 more than the required $785.09, your present loan will pay off in 15 years. To pay off in 15 years reuires you make a monthly principal and interest payment of $614.46
If you refinance $75,000 at 4.125%, the required payment of principal and inetrest will be $559.48 which is $54.98 less than just paying extra on your present loan.
I do not refinance under savings that small. You can decide yourself if you want to do it. It does not hurt anything and it does save money, just not a lot.
If you refinance $75,000 at 4.125%, the required payment of principal and inetrest will be $559.48 which is $54.98 less than just paying extra on your present loan.
I do not refinance under savings that small. You can decide yourself if you want to do it. It does not hurt anything and it does save money, just not a lot.
