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Thinking of refinancing...advice?

I purchased my current resident back in 99, 30 year. Included small home and 10 acres of adjacent land. I refinanced a few years ago for a lower interest rate for 15 years, and in the process during the new survey, I split several acres from the property and refinanced the home and 3 acres for a lower interest rate than before. In the end, I was paying $100 a month lower, shaved off almost 5 years, and got the several acres clear and paid for. So far, so good.

current interest rate is 4.75 (I think) but seeing how they dropped lower, thinking of doing it again, this time though, would like to do maybe a 5 or 7 year loan. Doesn't matter if it goes up some, just looking at paying the rest off faster.

What are my options, if any, and is it worth it? I saw on another sire someone pointing to a link (won't do it here) of a 5/1 ARM loan but no idea what that is....
  • June 06 2012 - Aiken
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Answers (3)

Check with some mortgage advisors for the right answer.
I have heard that if you are not planning to stay in a home for a long time that it is not always worth it in the long run. I try to pay toward the principal on our loan when possible and that helps quite a bit.
Sometimes it doesn't always make sense to spend the upfront fees to save a little in the long run, especially if you are not going to be there long.
  • June 06 2012
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You could probably get 3.5% on a 10 year fixed, but making an extra payment towards the principal as James suggested is probably the smartest solution.  If you are curious as to what the 3.5% 10 yr would look on paper, let me know and I'll be happy to get some more info from you and take a look at it.

  • June 06 2012
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5/1 arm is a 30 year loan. Your rate is good for the property. Pay more towards principal. Google vortex extra payment calculator.
  • June 06 2012
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