Should I refinance a mortgage that I have been pre-paying?

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I am trying to find out if refinancing a mortgage that I have been prepaying would make sense. The orginal mortage balance was 220,000 with 6% interest at 30 year amt. start date of 11/05. I have been making an additional principal payment since the beginning of the loan and currently have a balance of 206000. I am trying to find out if refinanceing at a lower rate and continuing to make my additional principal payment would make sense and at what interest rate should I refinance at? I have searched for calculator online but cant find one that fits my critera

  1. Reply
    May 2, 2011 at 7:13 am

    If you are prepaying, you might want to consider doing a 15 or 20 year mortgage. You will have a lower interest rate on your 15 yr vs. 30 year.
    Check out my website for calculators. I hope there is one on there that fits your criteria.

  2. Reply
    May 2, 2011 at 7:17 am

    You shouldn’t need a calculator for this one. You absolutely should refinance now or in the very near future. In fact, if your making extra payments now, it leads me to believe you may be able to afford a 15 or 20yr mortgage. 15 yr. rates today dipped below 5%!

    Get in touch with a Loan Officer or Broker and get some detailed numbers.

    Good Luck, you’re going in the right direction.

  3. Reply
    May 2, 2011 at 7:27 am

    Agree with above, but make sure PMI won’t kick in if you don’t have to 20% equity. The appraised value might have gone down from the one with the original loan.

  4. Reply
    Big Deal Maker
    May 2, 2011 at 8:10 am

    Well you have paid off 14,000. Of your mortgage at the 6% interest rate. Would it make since to lose that principle paid off just to refinance? I think not. At the rate you are paying it off now it seams you will have it paid off in about 20 years anyway. So save your money until it makes better since to you. Just an opinion.

  5. Reply
    May 2, 2011 at 9:10 am

    How long are you going to be staying? It doesn’t make sense to refi if you are thinking about moving in the next few years, you will never recoup the closing costs.

  6. Reply
    May 2, 2011 at 10:05 am

    I would suggest you refinance to a 15 year term since you are able to prepay. !5 year mortgages have substantially lower interest rates than 30 year loans.

    Today’s 15 year rate is 4.82 and today’s 30 year is 5.31

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