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Refinance gurus- I'm looking to refinance my mortgage- will it be worth it?
Posted on 3/9/15 at 7:51 pm
Posted on 3/9/15 at 7:51 pm
I'm looking for some sound advice before I actually talk to someone at the bank. I have approx 18 years left on a 30 year mortgage, about 70,000 left to pay off on 5.5% rate. Is it even worth refinancing?
6
Posted on 3/9/15 at 7:57 pm to Weizenman
Yes indeed!
And consider paying the closing costs out of pocket instead of adding to principal balance.
You can either lower your payments or cut down on the 18 years left.
May also want to look into the HARP program.
And consider paying the closing costs out of pocket instead of adding to principal balance.
You can either lower your payments or cut down on the 18 years left.
May also want to look into the HARP program.
Posted on 3/9/15 at 8:11 pm to Weizenman
Only really worth it if you go to a 15 yr.
I'd make a move sooner than later, as I expect rates to start creeping before summer
I'd make a move sooner than later, as I expect rates to start creeping before summer
Posted on 3/9/15 at 8:46 pm to Weizenman
quote:
I have approx 18 years left on a 30 year mortgage, about 70,000 left to pay off on 5.5% rate. Is it even worth refinancing?
If you are itemizing your tax deduction it's certainly worth a close look if you qualify for the best rates. If you can borrow for 4% (just to pull a number out of the air) for 30 years then if the average long-term inflation rate is no more that 3% after-tax (assuming a 25% tax bracket) then you are essentially getting free money.
FWIW, if you can get a rate that low then don't do a 15 year mortgage, do a 30. The closer your after-tax rate gets to the rate of inflation, the longer you should stretch out the loan.
Posted on 3/9/15 at 9:00 pm to Weizenman
quote:
I have approx 18 years left on a 30 year mortgage, about 70,000 left to pay off on 5.5% rate. Is it even worth refinancing?
I would at least consider taking it down to 15 years and getting to 4% or lower (depending on current rates) - your payment will be close and you'll make 36 fewer,
(ETA: Which is free money without interest. I'm not going to go on a rant about the "free money" advocates, but y'all forget that housing itself has a value).
This post was edited on 3/9/15 at 9:02 pm
Posted on 3/9/15 at 9:41 pm to Weizenman
Also, you're probably currently paying what equivalates to about 4.2 % interest right now, as you are 12 years into your amortization. Fyi. So consider if closing costs would be worth it. I bet you could get a 15 yr for about 3.25 right now. Rough estimation.
Posted on 3/10/15 at 4:35 pm to Weizenman
Heck yes, mine is 3.75%. They'll stick you with a 1% origination charge, but it'll save you some interest over the next few years.
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