Posted on: 29th Sep, 2010 12:26 pm
I have 12.5 years left on my mortgage at 5.675% on $39,500. Am I better off making an extra $50 payment monthly to principal, allowing me to pay this off in 10 yrs 5 months, or refinancing to a 10 yr loan for the $39,500 at 3.875%, with closing cost of $1600? Any advice you can give is appreciated!
hi mgowdy,
if you can afford to pay the closing costs and if you plan to stay in the property for the next 5-7 years, then it will be a good option to refinance the mortgage. however, if you don't plan to stay in the property for long, then it doesn't make sense to refinance the loan. it will not help you in offsetting the closing costs. in such a situation, it's better to pay an extra amount toward the loan.
thanks,
jerry
if you can afford to pay the closing costs and if you plan to stay in the property for the next 5-7 years, then it will be a good option to refinance the mortgage. however, if you don't plan to stay in the property for long, then it doesn't make sense to refinance the loan. it will not help you in offsetting the closing costs. in such a situation, it's better to pay an extra amount toward the loan.
thanks,
jerry