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FRM
Only 9 years left of a 15 year fixed 5% - is it worth refinancing?
and payment
Question :

We could lower the monthly payments,but, would be paying them for a longer period - we're not planning on moving, we're not hurting, and the house value is more than double what we owe.

So what would you do?

Answer :

Your question cannot be answered unless one knows your principal balance. You need simply, to compare the current interest cost with the cost of interest on a new loan. Then, divide that savings into the closing costs to determine how many months you need to keep the loan to break even.

If you owe less than 150k, and the closing costs are $3,600; you would break even on a 4.25% rate in 36 months. However, if you owe 400k with the same closing costs, you'd break even in about 14 months.

With a conforming loan, you can always pay additional principal to payoff your mortgage on your own schedule.

Date: March 18