That was to pick up, filling out the application now. I'll give you a final update when I'm complete.
Is there any reason to not refinance?
- Thread starter cyfan964
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That was to pick up, filling out the application now. I'll give you a final update when I'm complete.
Anyone on here ever looked into doing anything shorter than ten years? I assume it’s possible, but would the rates even differ from a 15 year?
We have 11 years left on our 15 year at 3.25%. I’m sure there’s no way to lower the payment or keep it the same by reducing the term, but if I can shave a few years off without adding a lot of cost I would love to do that.
We have 11 years left on our 15 year at 3.25%. I’m sure there’s no way to lower the payment or keep it the same by reducing the term, but if I can shave a few years off without adding a lot of cost I would love to do that.
we locked in a 2.65% rate on a 15 year. rolling the fees into the loan and still going to save around $100 per month
seems silly not to as long as you plan to stay in your house a few years.
seems silly not to as long as you plan to stay in your house a few years.
This is the key for us. We are planning to move in the next two years so unless the break even point is fairly soon which I doubt it will be it won't be worth it. Looked at just moving now but we just aren't quite in the right place yet.
What I think will happen is that mortgage companys will get ramped up and once they do the spread between purchase and refi rates will tighten.
You at the local one or an out of town one? I priced one bank who quoted 2.5%. So there are low rates out there.
I waited about 2 hours. I emailed and saw he emailed back about 2 hours later. May have been quicker had I checked.
You could lower the payment by over 5% if you refinanced, and that’s after closing costs are added. Probably be about the same but get close to 10 years.
Lately the boss has handed me all the appraisals in your town from the local one. Was wondering if I would keep heading up there. Busier than I care myself. Gives me a week off that town then.
So, are you saying I'm only saving money because I would be paying more? If I'm ok with the payment going up some to shorten my term would it be worth refi at these lower rates if I can get below 3%? Or, am I better off keeping my current loan and just paying extra on the principal?
Another tool to use is this: https://www.mortgagecalculator.org/additional-payment-calculator/
A way you can do a comparison for a 30 vs. 15, resetting at 30, etc. is you can add in additional one-time or monthly payments to get the monthly payment the same for each loan, and it will show you when it will be paid off.
For example, you can put in your specific loan details for your current mortgage, and it will tell you when it will be paid off. You could then put in a fresh 30 year refinance. Obviously your payment will be less because the rate is lower and you are starting over with the term. You can then add in the extra monthly payment amount to get the monthly payments on par and compare payoff date and total cost of the loan.
I am also inquiring there. If I hear about points/fees I'll try to remember to post. This seems like the current clubhouse leader locally so far.
Only you can know if locking in the extra amount on the payment is feasible with your budget with a refinance to a 15yr and sub-3% interest rate.
Below are 3 options all based upon starting with a 30yr mortgage of $200,000 at 3.5%.
1) Do nothing - Keep existing mortgage and payments
Term / Interest Rate: 30yr at 3.5%
Principle = $200,000
Monthly Payment = $898.09
Total Payments = $312,312
2) Refinance to 15 yr after Yr 7 of 30-yr original
Original Loan payments for 84 months = $75,440
Term / Interest Rate: 15yr at 2.75%
New Principle = $172,000
Monthly Payment = $1167.23 (+$269.14/mo over original payment)
15 yr loan life payments = $210,101
Total Payments = $285,541
Loan payoff is 8yrs sooner and $26,771 in interest savings than original loan.
3) Keep 30-yr original loan and make $320/mo extra payment
Original Loan payments for 84 months = $75,440
Added Monthly Payment at month 85 on = $1218.09
Total Payments = $294,376
Loan payoff is 8yrs sooner and $17,937 in interest savings than original loan.
Note: $51/month more than the refinance but it allows for financial flexibility if $320/mo extra payment is needed elsewhere...
