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Company Loan Type APR Est. Pmt.

refinance vs paying down

Posted on: 27th Mar, 2010 05:52 am
i have a present mortgage at 6.25% on 195,000 for another 23 years, refinance offer is 4.75% for 15 years. should i refinance or pay down an additional 5000 ayear on existing loan?
If you efinance to a new $200,000 mortgage (I just threw in $5,000 for closing costs and prepaids) for 15 years at 4.75%, the monthly principal and interest payment would be $1,555.66 for 180 months and you would pay in total $280,019.

Your required monthly principal and interest payment now is about $1,333. If on your present mortgage you voluntarily pay $1,555 monthly (extra $222 verey month which equates to what you would pay with a new 15 year mortgage at 4.75%) the present loan would pay off in 204 months and you will have paid in total $317,354.

By refinancing at 4.75% you save over 15 years about $37,335. Certainly worthwhile doing.
Posted on: 31st Mar, 2010 07:34 am
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?
Posted on: 31st Mar, 2010 06:30 pm
Hi Demi,

Your query has been replied to in the given page:
http://www.mortgagefit.com/refinance/paydown-loan.html

Take a look at it. I hope it'll help you.

Take care
Posted on: 01st Apr, 2010 03:22 am
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