Posted on: 02nd Aug, 2010 02:18 am
we owe 95,000 at 5.63 with 14 years left on a 20 year loan. would it make sense to refinance to a 10 year at 4.12 apr which includes closing costs financed into the loan? or should we make extra payments on the principal? we are staying in the house for at least another 10 years. we can not deduct the interest payments on our taxes.
Hi orflanch!
Welcome to forums!
As you're planning to stay in the property for a longer period of time, it would be a good option to refinance the loan. You're getting a lower interest rate to pay off your loan and the term of the mortgage is also shortened. Thus, you would be able to save money if you refinance your mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you're planning to stay in the property for a longer period of time, it would be a good option to refinance the loan. You're getting a lower interest rate to pay off your loan and the term of the mortgage is also shortened. Thus, you would be able to save money if you refinance your mortgage.
Feel free to ask if you've further queries.
Sussane
If you can afford the payments on a 10 year term, which I think you can. The10 year term may be a great option. I always encourage everyone to consider affordability and payoff their mortgage as early as possible.