Another twist on the partial refinance question

Joe, without knowing what your "reasonable interest rate" is, but knowing that your mortgage is about 2 years old, I would guess that you should be able to get a full percent lower in interest rate on a 15 year. When you lower you rate, but increase your term, it still doesn't work out to double the mortgage payment...probably closer to a 30-50% increase in payment, simply because the interest doesn't get a chance to compound as much over time and you're at a lower rate. The biggest challenge you'll find is the loan size. Several lenders have large rate adjustments when you get below $100,000. I know that seems a little odd, but some lenders won't even do a $50k loan amount and it's at the minimum loan size for most of them. I have some good resources for loans this size if you'd like to run some numbers with me. Just give me a call at 801-918-9385 or visit my website at www.homeloansinutah.com.

You want to payoff only a certain portion of the 30 year loan on your home? is this correct? Your question is a difficult one to understand it would be best to call me, Casey Persinger "The Low Price Lender" at 801-682-5626

I really like the 15 year fixed rate loan. Since you only have two years into your existing loan by going to a 15 year you will shorten your payment term by 13 years and save a ton in interest payments. If you can afford the increase in your payment it is definitely an option you should look at. For example: If you have a $200,000 loan at 5%, your principal and interest is appx $1,075 (does not include taxes and insurance). If you took the same loan amount of $200,000 at today's rate of 3.625%, your principal and interest would be appx $1,440. Your payment would be about $400 higher per month but you would save over $125,000 in interest over the life of the loan. And yes, I would suggest you refinance the entire loan. It is a much better way to go.

Not many lenders would allow a partial release of a mortgage. If yours will then the mortgage you wish to obtain would be a second mortgage, not a first mortgage, thus your interest rate would be higher than one in first position.Just speed up your amortization and save on long-term interest expense by paying down your mortgage - either in a lump sum toward the balance owed or a bit extra each moth.