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I have extra income, what is the best way to pay off my mortgage early?

Hi,
I own a home in Tampa FL.  The value of the home is about 85k and I owe 154k.  I currently have an ARM right now that will adjust this October from 6.625 down to 4.625.  This is because there is a 2 point adjustment cap.  For the next 28 months I will have an additional 5k per month because of an overseas contract ive accepted.  I am planning to pay 5k towards principal per month which will enable me to pay off my loan in 27 months.  I calculated that the bank will receive about 8k in interest from now until about 27 months from now (Sep 2014).  My question is:  Is there a better way to pay this loan down faster?  I considered refinancing at todays lower rates but the best I could get was 4.0 under the HARP program and even with the closing costs I would still come out pating $2300 more than if I were to just let my current ARM re-adjust.  Is there another way to pay off this loan quicker or am I taking the current best route?
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June 10 2012 - Tampa
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Answers (2)

The 2pt adjustment cap is usually on upward adjustments. It's more likely your rate will drop to around 3%.
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June 10 2012
Was the Harp quote for a 15 or 30 and when you say closing costs, does that include prepaids ( new escrow and int )
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June 10 2012
 
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