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Answers (4)
- Deborah Garvin, "loanmonarch"
- Contributions:438
Gary, All to often borrowers are encouraged to refinance at their own peril. I (nor anyone) could not give you valid response to your question without know the amount you currently own on the mortgage. That said, IMHO, the balance would have to be pretty darn high to make the numbers work so I can show either you or I that it makes sense for you to refinance.
Certainly, you would not want to add years to your mortgage...lower interest rate with more interest paid (over additional years) just does not pencil out. My adivce: Take the money you would spend on a refinance and apply a portion of it to the principal balance every month...pay off your mortgage a year or more faster....be mortgage free and live the high life. Best to you!
Certainly, you would not want to add years to your mortgage...lower interest rate with more interest paid (over additional years) just does not pencil out. My adivce: Take the money you would spend on a refinance and apply a portion of it to the principal balance every month...pay off your mortgage a year or more faster....be mortgage free and live the high life. Best to you!
- David Epprecht, "David Epprecht"
- Contributions:226
Gary, How much is left on your mortgage?
- Daniel Hamad, "AttorneyHamad"
- Contributions:146
I disagree with ProfessorBaron, but it depends on the specifics. If you have 7 years left, you have probably half of your principal left (maybe a bit less). Unless you're intending on paying it off very soon, the interest rate matters. With only 7 years left, you could take a 5/1 ARM (fixed for 5 years) at around 3.25% these days. Or if you didn't want to do that, another 15 year fixed around 4% (maybe less). Closing costs aren't much, though you would have to pay title insurance/title costs again.
For a 1.5%-2.5% reduction in interest rate, unless you're going to pay it off in a few months, I see no downside to refinancing.
I will admit I'm biased, and I'd love for you to have me represent you in your refinance, but I don't see how refinancing can possibly hurt you, with 7 years left on your loan... and it could significantly help you.
For a 1.5%-2.5% reduction in interest rate, unless you're going to pay it off in a few months, I see no downside to refinancing.
I will admit I'm biased, and I'd love for you to have me represent you in your refinance, but I don't see how refinancing can possibly hurt you, with 7 years left on your loan... and it could significantly help you.
This is not legal advice and is not intended to create an attorney-client relationship. The post is only an opinion. You should speak to an attorney for further information. The poster is licensed only in CT & NY. If this post is useful to you, please remember to upvote it.
- ProfessorBaron
- Contributions:303
Probably not. It probably will cost you at least $2500 to do. So how much is left on loan. Typically you can prepay as much as you like in small amounts with no pre pay penalty. Paying more payments will not change your regularly scheduled loan payments amount but your loan principal will decrease quickly with the extra payments so it will be paid off in a much shorter time period then the 7 years left.
Should I refinance the small amount that is left on my 15yr 5.5% fixed mortgage?
Gary
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