We are close to refinancing our home loan, and not sure which way we should go. Looking at 240k left on our current loan, paying a substantially higher than current market interest rate. We have 23-24 years left on the original loan.
With the refi at 15 years we would be getting a 3.85% rate and paying almost the same exact amount and our current monthly note. Which is not an issue, but saving on the monthly payment wouldn't be terrible either. At 30 years and 4.85%, our monthly payment would drop by roughly 600 dollars. We were quoted 20 and 25 year rates, but they seemed less attractive options.
Now the issue that is complicating things in my mind are, this is not the house that we plan on living in 15-20 years down the road. Our intentions would be to build at some point, as well as my career isn't the most stable out there so issues could arise at some point to either move, downsize, or upsize
Doing some work with online calculators I get the interest paid on both loans to be:
15 years $ 138,600
30 years $ 349,200
I guess the question is does the monthly savings outweigh the saving money on interest and higher equity in the house if you on average will live in the house for 2-10 years?