Posted on: 19th Jul, 2012 01:15 pm
hi! i need your opinion.
we have a 15 yr fixed mortage that is due on may 2024. our current interest rate is 4.88%, making about $1400 monthly payment. we wanted to get it paid as early as possible. we can make an extra payment of $300 a month. the bank has offered us a 3.99% interest rate but will push it to 20 yr fixed mortgage ( $750 monthly payment), no finance charge. the house worth is about $250,000. we have a good credit score.
should we refinance and just make the same payment as we are making right now and the extra $300 a month? or should we leave it as it is and just pay the extra $300? any advice? thanks!
we have a 15 yr fixed mortage that is due on may 2024. our current interest rate is 4.88%, making about $1400 monthly payment. we wanted to get it paid as early as possible. we can make an extra payment of $300 a month. the bank has offered us a 3.99% interest rate but will push it to 20 yr fixed mortgage ( $750 monthly payment), no finance charge. the house worth is about $250,000. we have a good credit score.
should we refinance and just make the same payment as we are making right now and the extra $300 a month? or should we leave it as it is and just pay the extra $300? any advice? thanks!
Hi ahpeste,
As your 15 yr fixed mortgage is due on May 2024, I don't think it will be a good option to refinance it now. You can continue with your payments as you're presently doing and just pay the extra $300. In order to know more about refinance or pay extra, you can check out the given page: http://www.mortgagefit.com/refinance/pay-extra.html .
As your 15 yr fixed mortgage is due on May 2024, I don't think it will be a good option to refinance it now. You can continue with your payments as you're presently doing and just pay the extra $300. In order to know more about refinance or pay extra, you can check out the given page: http://www.mortgagefit.com/refinance/pay-extra.html .
Hello Ahpeste,
Best time when people to refinance for two basic reasons. The first is to get a new mortgage that offers a lower payment. The second reason is to increase the loan size and cash out some of the equity in the property. Borrowers can also do a combination of these two, if they have enough equity and the right new mortgage.
:idea:
Best time when people to refinance for two basic reasons. The first is to get a new mortgage that offers a lower payment. The second reason is to increase the loan size and cash out some of the equity in the property. Borrowers can also do a combination of these two, if they have enough equity and the right new mortgage.
:idea:
Your question does not You want to INCREASE your loan term yet pay off the loan as quickly as possible? Answer, I think, is that ybeen making curtailments. If so, your loan is no in May 2024†but sometime of there.
First step is to calculate your remaining loan term assuming you make just the regular payments from now on. This will give you some perspective. Them figure out if you want to be obligated to the higher payment your now making ($1,400?). You can back into a rate/term combination that way. 15-year term is much than the 20-year relative to the 30-year rate. 10-year term is better but the spread has narrowed relative to the 15-year.
A loan officer can guide you through this. Much easier if all yo considering ird to tell.
First step is to calculate your remaining loan term assuming you make just the regular payments from now on. This will give you some perspective. Them figure out if you want to be obligated to the higher payment your now making ($1,400?). You can back into a rate/term combination that way. 15-year term is much than the 20-year relative to the 30-year rate. 10-year term is better but the spread has narrowed relative to the 15-year.
A loan officer can guide you through this. Much easier if all yo considering ird to tell.
Your best bet would be to refinance into a 10 yr fixed. You would get the lower rate, the ability to pay it off earlier and if you still wanted to throw money at the principal you could also do that...Click on my profile and follow the link to contact my office. We are happy to answer your questions and give you side by side comparisions (estimates).