- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (15)
- Clay Branch, "Georgia Loans"
- Contributions:7836
What I get is a new loan of $63k ( 7/1 Arm using 3% rate ) and payment of $265, add the extra principal of 348 to equal your current payment and it pays off in 118 payments or 9.8 years.
- lesleyeast
- Contributions:3
That payment amount includes escrow for insurance and taxes. As you can see I am paying more to the principal than interest. So does it make sense to refi?
- Clay Branch, "Georgia Loans"
- Contributions:7836
Your figures do not add up. You say your payment is $890 but below you state your most recent payment included $320 principal and $293 in interest. That would mean your P and I payment is $613 and the rest is escrow which may include mi. Give the total breakdown of your monthly payment.
- Andy Matejka, "tejks"
- Contributions:352
The true answer to your question lies in your ultimate goal and your use/purpose for the property. However, others have mentioned some good options including the ARM. Yet that requires the discipline to pay extra each month. Will you do that? IF so, that 's a great option.
You will pay less in interest if you refinance to today's low rates.
Study the Amortization schedule of a new 10 yr loan to see if that is right for you. It's probably the most logical and comparable to your current time frame.
You will pay less in interest if you refinance to today's low rates.
Study the Amortization schedule of a new 10 yr loan to see if that is right for you. It's probably the most logical and comparable to your current time frame.
- Gordon Haraway, "1stTimebuySpecialist"
- Contributions:250
- REisBroken
- Contributions:21
That does make sense. Surprising.
- Dan, "the_country_hick"
- Contributions:4697
That is one of the very few times I have seen an arm mentioned that would make economic sense.
Actually it would help you to refinance. Assume that you could get a 7/1 ARM @ 3% with around $1700 in total closing cost. Your payment would be $608.33 and would be $281.67 less than the $890 you have now. If you continued to pay the $890, you would payoff your home in 6 years and 7 months, saving you 17 months @ $890 but costing you $1700 up front. No need to worry about the ARM since you payoff before reset.
- HomeSand.net, "White Picture"
- Contributions:4394
With the $63K mortgage, 5.25%, payoff in 8 years, the monthly mortgage payment is $805.09
At 3.75%, 10 years term loan, assume there is no closing cost, in order to pay off the $63K mortgage in 8 years, Lesleyeast had to pay $760.62 a month, Lesleyeast saves $4,270 overall ($805.09-$760.02) x 96 months.
But with the small loan amount, there is no leader, who is going to do the no closing cost loan, which is about $2,500 (title insurance, appraisal and all kind of the fees).
$4,270 - $2500 = $1,770 saving is not worth for the challenge ahead if Lesleyeast goes for the refinancing, not to mention if Lesleyeast wins the super lotto (unlikely) and Lesleyeast want to pay off early then He/She lose $2,500 closing cost.
At 3.75%, 10 years term loan, assume there is no closing cost, in order to pay off the $63K mortgage in 8 years, Lesleyeast had to pay $760.62 a month, Lesleyeast saves $4,270 overall ($805.09-$760.02) x 96 months.
But with the small loan amount, there is no leader, who is going to do the no closing cost loan, which is about $2,500 (title insurance, appraisal and all kind of the fees).
$4,270 - $2500 = $1,770 saving is not worth for the challenge ahead if Lesleyeast goes for the refinancing, not to mention if Lesleyeast wins the super lotto (unlikely) and Lesleyeast want to pay off early then He/She lose $2,500 closing cost.
- Dan, "the_country_hick"
- Contributions:4697
Use an online amortization calculator. Look at how much money is now going to principle. Then look at a 8 year at todays rates and see if it pays off or not. Do not use different time frames. That can give the wrong results as a longer time frame can distort the true benefits or costs involved.,
- HomeSand.net, "White Picture"
- Contributions:4394
Unless you get the loan with zero closing cost, which I doubt with that small loan, there is not worth to refinance.
- lesleyeast
- Contributions:3
- Gary Bell, "Gary Bell"
- Contributions:45
What are you trying to do? If you want to cash out some equity and extend the term of the loan to 15, 20 or 30 years with a lower payment, then maybe. However, you will probably be paying more interest than if you just left it in place. You should compare amortization schedules for each option before you make your decision.
- wayne lancaster, "funds2"
- Contributions:1177
What is your loan balance? How much is your payment and what amount is going towards principle?
I am in the last 8 years of a 30 year mortgage. Should I refinance?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.