Should I refinance when I currently pay extra every month?
Currently I owe $ 92,000 on a house worth $ 130,000 at 6%. The mortgage is $ 600 and we pay an extra $ 150 every month.
Should I refinance to a 4.875% for a $ 103,000 loan (I would like some money to repair a part of my house). There are lots of refinance calculators on the internet but none of them tell you how much the “extra payment” will help. The cost of the refinance is $ 1,500 and it would save us about $ 50/month which we would then add back in to the “extra payment” we make, so the mortgage would be $ 550 + $ 200 extra per month.
Thanks. The reason I don’t want a 15 year loan is because we are thinking of having a child soon and don’t want to be locked into that higher monthly rate. By paying extra we can stop if we need to.
Toni – I put 24% down so I’ve never had PMI. If you look the 103K is to keep to loan-to-value at under 80%.