Hi all,
So i have 30 year loan for 3.25%. If I have some extra money, I try to make payment towards the principal every month. (I paid extra $300 the other day and it said i saved $450 in interest:-)
I am not sure if I will get a better rate in future for 30 year loan, but just in case if I want to refinance at a lower rate or may be move to 15 year loan (which I don't think is possible), do I need to pay extra money while doing this..like pay $20,000 and I should be able to refinance at a better rate.
The question I am asking because as I am putting my extra money every month towards principal, if the money is required in future for the above purpose, I can start saving with that intent only.
Would appreciate if anyone explain the process if they have gone through.
Thanks,
Refinance question
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Re: Refinance question
With refinancing, you want to pay attention to the closing costs. Those are the "expenses" to refinancing, and they do not affect the rate.
The rate you pay in interest is determined primarily by your creditworthiness and the current market rate for financing. Unless you have a jumbo loan, paying down the principal to refinance shouldn't change your rate.
Good luck!
The rate you pay in interest is determined primarily by your creditworthiness and the current market rate for financing. Unless you have a jumbo loan, paying down the principal to refinance shouldn't change your rate.
Good luck!
Re: Refinance question
3,25 is very good for a 30year. I just refinanced and 30 years without any points were 3.50. You could refinance to a 15year at 2.875, but not sure if it would be worth it.
Re: Refinance question
Stick with what you have... that's a good rate for a 30 year mortgage.
No need to save up to try and refinance. The rate isn't changed by how much you can put down or pay down.
If you could handle the higher payment of a 15 year mortgage easily, that would be a good way to lower your total interest paid. It doesn't sound like that's the case though? Keep what you have and pay extra when you can. As you see, that's another good way to lower your total interest paid.
No need to save up to try and refinance. The rate isn't changed by how much you can put down or pay down.
If you could handle the higher payment of a 15 year mortgage easily, that would be a good way to lower your total interest paid. It doesn't sound like that's the case though? Keep what you have and pay extra when you can. As you see, that's another good way to lower your total interest paid.
Re: Refinance question
Thanks orca91..orca91 wrote:Stick with what you have... that's a good rate for a 30 year mortgage.
No need to save up to try and refinance. The rate isn't changed by how much you can put down or pay down.
If you could handle the higher payment of a 15 year mortgage easily, that would be a good way to lower your total interest paid. It doesn't sound like that's the case though? Keep what you have and pay extra when you can. As you see, that's another good way to lower your total interest paid.
Thanks, |
FB