Posted on: 30th Aug, 2010 04:24 pm
i owe 116,000 on a 30 yr 6% mortgage that i pay down an extra 200 a month. is it worth refinance to a 15 yr 4.5% or so mortgage? if i am unning the numbers correctly, it comes out both would be paid off within 6 months of each other including the extra 200, yet the interest savings is substantial. how can that be?
Hi dbraby!
Welcome to forums!
If you're planning to stay in the property for a longer period of time, then it would be a good option to refinance the loan. A 15 year mortgage with 4.5% interest rate will not only help you in saving money but you will be able to own the property free and clear as well. If you go for a 15 year mortgage with a 4.5% interest rate, then your monthly payments will be $887.39. If you can afford the payments along with $200 extra, then you can go for it.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you're planning to stay in the property for a longer period of time, then it would be a good option to refinance the loan. A 15 year mortgage with 4.5% interest rate will not only help you in saving money but you will be able to own the property free and clear as well. If you go for a 15 year mortgage with a 4.5% interest rate, then your monthly payments will be $887.39. If you can afford the payments along with $200 extra, then you can go for it.
Feel free to ask if you've further queries.
Sussane