Mortgage Refinance

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ddurrett896
Posts: 1434
Joined: Wed Nov 05, 2014 3:23 pm

Mortgage Refinance

Post by ddurrett896 »

Currently have 22 years left on a $125,000 mortgage at 3.625%. Payment is $990.
Can move to a 15 year at 2.5% on the $125,000. Payment would be $1,130.

If we keep our mortgage and pay an additional $200/month, we will end in 15 years. Essentially pay an extra $60/month for the flexibility to stop if needed.

Would you make the move?
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beernutz
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Joined: Sun May 31, 2015 12:50 pm

Re: Mortgage Refinance

Post by beernutz »

Where are you finding 2.5% 15 year refis?
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. --Will Rogers
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lthenderson
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Location: Iowa

Re: Mortgage Refinance

Post by lthenderson »

You need to figure out the cost to refinance into your calculations.
mega317
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Re: Mortgage Refinance

Post by mega317 »

Seems like expensive insurance to me. But I don't know your financial picture. Are you dependent on one unstable income? Two jobs and could keep up with the payments if one was lost?
https://www.bogleheads.org/forum/viewtopic.php?t=6212
Topic Author
ddurrett896
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Joined: Wed Nov 05, 2014 3:23 pm

Re: Mortgage Refinance

Post by ddurrett896 »

beernutz wrote: Mon Mar 30, 2020 3:14 pm Where are you finding 2.5% 15 year refis?
NFCU.
Topic Author
ddurrett896
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Re: Mortgage Refinance

Post by ddurrett896 »

mega317 wrote: Mon Mar 30, 2020 3:52 pm Seems like expensive insurance to me. But I don't know your financial picture. Are you dependent on one unstable income? Two jobs and could keep up with the payments if one was lost?
House is like $350,000. Escrow is $300 - $200 to tax and $100 to insurance thru State Farm. Both jobs are stable.
dandinsac
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Joined: Sat Jul 30, 2016 8:34 am

Re: Mortgage Refinance

Post by dandinsac »

I would suggest looking for a no out-of-pocket cost refinance for 20 years. If the interest is low enough, your payment would be about the same. You keep most or all of the flexibility and save 2 years of payments.
Flyer24
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Re: Mortgage Refinance

Post by Flyer24 »

Topic moved to Personal Finance.
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