We are not mortgage refinancing now know what is the best deal for you?

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We are changing our mortgage from 30 years to 15 years / fix repair. Is it wise to pay more money to reduce the rate. If we stay in this house for 5 more years, it is advisable to refinance? How can we reduce costs to refinance, we asked several companies are ready, they all have roughly the same price.

  1. Reply
    April 30, 2011 at 12:52 am

    Yes, it is wise to pay more up front to lower the interest rate. Over the life of the loan, the compounding on the interest will equal many times the amount you pay up front for the lower rate.

  2. Reply
    April 30, 2011 at 1:49 am

    Be sure to refinance for the balance only. Check all your options. If you’re score is good it may be better to do a “pick-a-pay” or pay option loan. You qualify at the 30 year rate but each month you have the option of paying 30-yr payment, 15-yr payment, minimum payment or interest only payment. The rate is lower than a regular fixed rate mortgage. Therefore, if you were having to make home or car repairs you can pay the minimum payment and still be on time for you monthly payment. You can also keep current mortgage and pay an extra payment once a year and it will cut the mortgage time in half.

  3. Reply
    April 30, 2011 at 1:56 am

    Yes it is a smart move. You will be paying off your loan faster and paying less interest.Hopefully you will be able to pay off your home in a decent amount of time and then either sell it, or put more equity into it.Good luck!

  4. Reply
    April 30, 2011 at 2:53 am

    Keep in mind that it costs a great deal of money to refinance. And if you can’t recoup what you pay out to refinance in that 5 years, then it may not be worth it. You really need to take a look at your whole financial picture. Refinancing could impact other area’s costing you money that you thought you would save. If you can’t save $ 150 + per month on a refinance, then it isn’t worth it. You might want to check with your accountant about any implications to the rest of your finanical well being.

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