Posted on: 27th Mar, 2010 05:52 am
i've been paying $1000 extra for the past 1 1/2 years on a 30 year, $260,000 loan @ 6.125 which started in oct 04. i just got a offer from the bank to refinance at 4.875 x 15 years with 225,944 left on the loan. i would like to pay the house off. assuming the usual refinance charges rolled in, which way is the best savings?
It will make sense to refinance the loan only if you're planning to stay in the property for the next 7-8 years. This will help you in offsetting the closing costs and will make you save a certain sum of money. If you want to sell off the property in the near future, then it's better not to refinance.
I don't know the details of your scenario but, If that offer sparked your interest, I'd check some other lenders as well. You might be able to find a better offer than that.
It makes sense to refinance.
I would think the rate should be more like 4.375% or 4.500%.
I would think the rate should be more like 4.375% or 4.500%.
