Posted on: 31st Mar, 2010 06:30 pm
i have 6.5% interest on 331000 loan for 27.5 yr. monthly payment 2160/m. refinance offer 4.8% interest for 15 years but i need to put in 9000 of closing cost and payment is 2950/m. would it be better if i pay 500 dollars more per month with my present payment vs refinance?
Hi Demi!
Welcome to forums!
The offer to refinance your present mortgage is pretty good in my opinion. However, it is true that you need to put down lot of dollars as closing costs. If you plan to stay in the property for a longer period of time, say around 8-10 years, then it will help you in offsetting the closing costs. However, if you are not planning to stay in the property for such a long time, then it's better not to refinance the loan. In that case, you can put in extra dollars towards the mortgage and pay it off.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The offer to refinance your present mortgage is pretty good in my opinion. However, it is true that you need to put down lot of dollars as closing costs. If you plan to stay in the property for a longer period of time, say around 8-10 years, then it will help you in offsetting the closing costs. However, if you are not planning to stay in the property for such a long time, then it's better not to refinance the loan. In that case, you can put in extra dollars towards the mortgage and pay it off.
Feel free to ask if you've further queries.
Sussane