Should I refinance or pay more towards original principal?
Should I refinance or pay more towards loan???Our current rate is 5.375 on a 30 year note. we owe 280,000. Our monthly payment on at is 1679. (We have been paying 1800/month). We have an opportunity to refinance into a 15 year loan at 4.6 with 0 points. (We can afford the extra payment)What makes sense? Should we stick with our original loan and just pay the amount ($2157) we would be paying on the 15 year note to the original note?We plan on staying in the house for a very long time. by kbissing4348 from Boise, Idaho. Jan 14th 2011
Dan Paladin (dpaladin)
#356 ranked lender in California - 792 contributions
The rate should be lower...as pointed out by my colleagues...your scenario is all about the numbers..a professional lender would be able to provide you with loan comparisons demonstrating the differences with staying in your current loan, accelerating the payoff of your current loan and the 15 yr that is being offered. Here is a calculator that you can use..click on the refinance tab and run your own comparison by entering the data...http://www.mycalx.com/calculator1.php?CID=129
John Le Francois (john.lefrancois)
#2 ranked lender in Nevada - 14 contributions
Without knowing how long you been paying on your existing loan it would be hard to reply to this question. Generally it would make sense to reduce loan term at the same time lowering the rate. One caveat though is your home under water or do you have an existing FHA loan? to see if you lowering the rate and term will save you more money then adding to the principal use this 20 in one calculator. http://www.lasvegasmtg.com/paymentCalculator.html
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
How long have you been in your loan? ... Sometimes starting over with a lower rate is not beneficial. .... Happy funding, Rudi
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