Posted on: 17th Oct, 2010 06:31 pm
I have a $149,000 mortgage @ 5.875% on a 20 year loan, with $106,000 principle remaining. I would have 13 years left, but have knocked off 15 months by paying extra principle. We may only be in the house for another 5-7 years. Would it be worth refinancing to a 10 year fixed or an ARM, or should I just continue paying an extra $130 in principle each month? All the calculators I've found don't take into account that I already pay extra each month.
welcome maureenquinn,
as you're planning to stay in the property for the next 5-7 years, it's a good option to refinance the mortgage at a lower rate. however, you should remember that you'll have to pay closing costs when you refinance your mortgage. if you can afford to pay that closing cost, then you can go ahead and refinance the loan.
as you're planning to stay in the property for the next 5-7 years, it's a good option to refinance the mortgage at a lower rate. however, you should remember that you'll have to pay closing costs when you refinance your mortgage. if you can afford to pay that closing cost, then you can go ahead and refinance the loan.