Posted on: 30th Jul, 2010 10:13 am
my husband and i currently have a 30 year fixed mortgage @ 6.25%. we have paid 9 years on the mortgage and our balance is down to $117,000. would it be smart to refinance and take advantage of the lower interest rates? i know that our monthly payment would be lower, but we would end up paying more intersest because our loan period would be extened for another 9 years. not sure if it worth it.
You need to check out whether or not you've equity in your property. If you've equity in your property and meet the other requirements of the lender, you would be able to qualify for a refinance. However, it would be worth refinancing if you plan to stay in the property for a longer period of time. This will help you in offsetting the closing costs that you pay while refinancing the loan. As far as the loan term is concerned, you can go for a 15 year fixed mortgage.