Posted on: 17th Oct, 2010 06:37 pm
I currently have a 30 year simple interest mortgage at 7.81% which allows me to pay bi-weekly payments. My current balance is around $78000. I have been paying on it for about 7 years.
I have been approved for a fully amortized mortgage at 3.625%. However, I can only make monthly payments.
My question is this a better deal?? I know obviously the interest rate is lower which is a good thing, but since it is fully amortized as opposed to simple interest and when I can currently make bi-weekly payments vs monthly payments I am not so sure it is a better deal. I can't find any calculators online that will help me make this decision. :-( If they were both full amortized loans it would be easier, but since it isn't I am not sure what to do.
I have been approved for a fully amortized mortgage at 3.625%. However, I can only make monthly payments.
My question is this a better deal?? I know obviously the interest rate is lower which is a good thing, but since it is fully amortized as opposed to simple interest and when I can currently make bi-weekly payments vs monthly payments I am not so sure it is a better deal. I can't find any calculators online that will help me make this decision. :-( If they were both full amortized loans it would be easier, but since it isn't I am not sure what to do.
Welcome leavy,
In my opinion, as the fully amortized loan has very low interest rate, it will be a good option to go for it. However, if you're not planning to stay in the property for a longer period of time, then it's not a good option to refinance the loan though it has a lower interest rate.
In my opinion, as the fully amortized loan has very low interest rate, it will be a good option to go for it. However, if you're not planning to stay in the property for a longer period of time, then it's not a good option to refinance the loan though it has a lower interest rate.