Refinancing VS. More to Principal
Loan Balance:450,000Current rate: 5%, 30 year @$ 2,486 montly payment.If I refinance the New rate would be: 3.75%, 15 year fixed with $2800 closing cost apprx= $800 more dollas on new montly payment.Is it worth refinancing or applying the $800 more to principal with the current rate? by glennysams from Stilwell, Oklahoma. Jul 1st 2011
Chris Gummerson (cgummerson11)
#397 ranked lender in California - 648 contributions
You will save on interest in the long run on a 15 year loan, but what happens if you could not make the 800 dollar increase in payment later on? If you stayed on the 30 year, you have the "option" to pay more. You would not be locked in to make the higher payment, but you will pay more for total financing charges.
Ask our community a question.
Get an answer
Related Questions
