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I am 6 month into a 30 year fixed at 6.2per cent. Is it worth refinancing at 4.75 on a 20years fixed

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January 07 2009 - Brentwood
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Probably. However, it's difficult to tell unless we know how much youi borrowed when you took the mortgage out.

But I'll give an example: Let's say you borrowed $200,000 for 30 years at 6.25%. You now want to refinance into a 20 year note at 4.75%. Let's also assume your closing costs are 1.5% of the loan amount, and you roll those costs into the new mortgage.

Your payments will increase by $80/month. But you will save $119,850 in interest payments over the life of the loan. If you were to pay off your current loan in 20 years, your payment will be $1462/mo. The payment on the new loan will be $1315/mo.
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January 07 2009

I'm a believer in getting a good bang for your buck!  The benefits will be plenty and you'll be building equity for the future.  If you plan on staying in the property for awhile it makes sense to refi.  Have you looked at the rates on a 15yr loan in the last few days?   That may be an even better option for you . . .  

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January 07 2009
 
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