Posted on: 03rd Jul, 2009 08:46 am
i'm 63 months into a $300k, 30 year 5.25% apr mortgage. i've been making an extra payment principal equal to 50% of my monthly payment, planning on continuing that and therefore have about 9 years left on my mortgage. was thinking about refinancing to a 10 or 15 year to get a lower rate. required monthly payment would only go up $100 per mo. on a 15 year (4.8% apr) but i'd keep paying the same absolute amount each month. is it worth it to refinance to a 10 or 15yr or just keep the 30 and making the extra 50% each month
thanks.
thanks.
Hi jobrund,
You said that if you keep paying extra money like the way you have been doing, you will pay off the loan in 9 years. Right? If you can pay it off in 9 years, I don't think there is any need to refinance into a 15 year loan. A refinance would mean you will have to incur closing costs. I think if you keep the money with you and use it to make the current payments, it will be much better. Thus if you can afford to make the extra payments, in my opinion it is better for you to just keep making the payments and pay off the loan as early as possible.
You said that if you keep paying extra money like the way you have been doing, you will pay off the loan in 9 years. Right? If you can pay it off in 9 years, I don't think there is any need to refinance into a 15 year loan. A refinance would mean you will have to incur closing costs. I think if you keep the money with you and use it to make the current payments, it will be much better. Thus if you can afford to make the extra payments, in my opinion it is better for you to just keep making the payments and pay off the loan as early as possible.
i am in agreement with jenkin. the costs of refinancing, i think, would be higher than would be beneficial for someone who, like you, is paying additional principal in the manner that you do.
At first glance there is no need to refinance.