Refinance, extra principal, or both?
I plan to stay in my house for 10 more years (at least). I am currently about 2.5 years into a 30 year, fixed rate, $200K mortgage at 6.625%. I have been paying $300 extra principal a month, so my current principal balance is about 190K.
I am considering refinancing to 30 years @ 5.125. I’d pay a point and closing costs around $4500 (unfortunately, I’m in Massachusetts), which I could also finance for a loan amount of about 194.5K (or I could just pay closing costs in cash).
How do I figure out if I should keep my current mortgage and keep paying $300 monthly (or more) extra principal, just refinance, or refinance and pay in extra principal (I could afford to pay in even more than $300 with the new lower payment)?
Also is there any advantage to paying the closing costs in cash vs. financing them in to a new mortgage?
This is confusing. Also any opinions on which direction mortgage rates might go over next few months? (I know. Stupid question lol.)
Refinancing and paying more on the principal would be a great option.
You can even do a 15 year mortgage.
Keep this up and your house may be paid off in the next 10 years.
If you can pay your closing out right then do it, if not let it be finance in, it would not hurt you in any way.
Massachusetts Mortgage Rates Update for july 25th
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Keys to Mortgage Financing & Refinancing $9.5 Updated to account for current low interest rates and historically high real estate prices, this book advises on the details of getting a mortgage for a home purchase, dealing with banks and other … |
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Mortgage Payments $10.44 Updated to reflect current rates, these quick reference tables show the size of monthly payments necessary to amortize loans on amounts up to $600,000 over periods ranging from one to 40 years … |
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Report To The Massachusetts Highway Commission On Telephone Rates For The Boston And Suburban District… $17.44 Report To The Massachusetts Highway Commission On Telephone Rates For The Boston And Suburban District… |
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Navigating the Mortgage Maze: The Simple Truth about Financing Your Home $12.99 “Confused or overwhelmed by the “mortgage maze”? Industry pro Dale Vermillion explains the simple truth. Learn about wise mortgage financing, and how to avoid common traps that cost you thousands of dollars Chapters include: > – The Top 10 Mortgage Mistakes – Simple Truth about Interest Rates and APR’s – Mortgage Industry Dilemma – The Simple Truth About Debt – Qualifying for Mortgage Financing – Establishing Financial Goals – Mortgage Refinancing as an Investment Tool – Borrowing Smart – Mortgage Independence – Moving to Real Life Change” |
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Massachusetts $15.92 Massachusetts |
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