Posted on: 01st Feb, 2012 09:13 am
We have 12 years left on our 15 year loan at 4.375%. We can get a 3.25% loan with $5K in closing costs. Is this a good idea?
You ask a good question. the answer will come form doing a simple calculation.
Take your current P & I payment and multiply it by the remaining number of months. The result will give you what will cost you to payoff your existting loan over the remaining term.
Next, take the P & I payment of the new loan at the lower rate and multiply that by 180. The result will give you what it will cost to payoff the new loan. If the savings is more than the costs, you might want to consider it. If not, you should stick with what you have.
Take your current P & I payment and multiply it by the remaining number of months. The result will give you what will cost you to payoff your existting loan over the remaining term.
Next, take the P & I payment of the new loan at the lower rate and multiply that by 180. The result will give you what it will cost to payoff the new loan. If the savings is more than the costs, you might want to consider it. If not, you should stick with what you have.
hi corky!
welcome to forum!
if you want to stay in the property for the next 4-5 years, then it will be a good option to refinance the mortgage at a lower rate. moreover, staying in the property for the next few years will also help you in offsetting the closing costs that you pay while refinancing the loan.
feel free to ask if you've further queries.
sussane
welcome to forum!
if you want to stay in the property for the next 4-5 years, then it will be a good option to refinance the mortgage at a lower rate. moreover, staying in the property for the next few years will also help you in offsetting the closing costs that you pay while refinancing the loan.
feel free to ask if you've further queries.
sussane
Moderators, please be cognizant of the meaningless folderol we continue to see in these forums. I've come across a ton of these in the forums that I check most regularly; but the same posters (undoubtedly spammers) are all over the site. What they say denigrates this forum in the overall scheme of things.
