Should I refinance my mortgage or not?

Should I refinance my mortgage or not?
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#1

I am debating on doing a refinance and need someone to run some numbers for me to see if it makes sense or not.
Primary Residence - I currently have a 30 year fixed at 4.8% and my current monthly mortgage on $187,000 is $1,491. If I refinance to a 15 year at 2.75%, my mortgage would be $1,640. I would be shaving approximately 8 years off my current mortgage (I currently have 23 years left). The loan will cost me about $5,200 with fees, closing etc. - I am wondering if I should do it. My alternative would be to just send in an extra $350/month toward my principal in which case I would be done with the loan in 14 years.


#2

Your question suggests that you’d like to know if getting approved for a shorter-than-normal (under 30 years) mortgage makes sense.
From the standpoint of interest rates, it would certainly seem to. The problem is, if you opt for and get approved for a 20-year or 15-year mortgage with a lower interest rate, you also get locked in to be required to get them a higher payment every month for those 15 or 20 or whatever years.
Yes, you save interest doing that. Lots, in fact. Problem is, you commit yourself to making a significantly higher payment every month until it’s done, regardless of what’s going on in your life at that time.
I’d recommend keeping a 30-year mortgage but paying ahead on it. I can show you a really cool way to do that without being locked into it by the bank.
Schedule a free 10-minute call here: http://bit.ly/1NnY3FD. Pick the top link “FREE Discovery Call”.
I specialize in financial education and collaboration and I’m a reformed broker who can help you make it happen without the high cost.
And I give customers the same professional tools that are usually limited to the yacht-owner crowd.
Happy to help more if you’d like to know more - I made my company so that everyone could have quality advice, not just those who already have a pile of money.


#3

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