Posted on: 17th Apr, 2010 10:39 pm
i refinanced from a 30year loan in 2003 to 15 year, $123k, 5.75%. my mortgage is 1172/ mo. i can afford paying up to $1000 more. i want to pay off my loan and retire in 5 years. i have calculated that with paying $500 additional payment toward principal, i can pay this loan off in 5 years. i am wondering if i should refinance? would i save money/interest if i refinance instead of additional payment toward mortgage? if refinancing is a good idea, then how low the refinance rate should be? and how about closing costs?
thanks
thanks
Welcome nazanin,
While you refinance the mortgage, you would be liable for paying closing costs. Rather than that, it would be a better option to pay extra towards your loan and own the property free and clear within 5 years.
You should only refinance if you get interest rates which are 2% lower compared to your present interest rate.
While you refinance the mortgage, you would be liable for paying closing costs. Rather than that, it would be a better option to pay extra towards your loan and own the property free and clear within 5 years.
You should only refinance if you get interest rates which are 2% lower compared to your present interest rate.