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I received the letter July 26. My loan will be paid off in 2015.

I presently owe 69,000 at an interest rate of 5.000%.  Chase is offering me 2.750%.
Will this offer add more years to my loan?  is it something I should considered?
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July 26 2012 - Glendora
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Dear User,

Tempting...very tempting...but! You will add more years to your loan, and I don't know about you, but after so many years of trying to pay off something...It's great to finally do it. I would suggest you add money to your mortgage payment if you can, to get the principal down faster and pay off the loan.
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July 27 2012
You would save $186 a month in interest charges with the lower rate. For that reason alone, I think it is worth it.  

The down side is you have 3 years left on your current mortgage and Chase is probably offering you a 15 year or 10 year term.

If you do refinance, I would continue to make the payment you are paying now. That way you will be making extra payments on the principal and will pay off the mortgage much sooner.   That $186 monthly savings on interest would be applied to the principal.
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July 26 2012
Profile picture for sunnyview
Most likely they want you to refi for a new term either 15 or 30 years. If that is the case, it is not a good deal and I would refuse.
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July 26 2012
You should ask them the terms of this. Also what is the value of your home compared to the loan? If all terms stay the same and they reduce tr interest rate you will be able to pay it off faster if you make your same payments.
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July 26 2012
How much is your monthly payment currently?
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July 26 2012
 
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I received the letter July 26. My loan will be paid off in 2015.
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July 27 2012 | 5 answers
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