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To refinance or not

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    To refinance or not

    We owe $64,000 on a house that we mortgaged for $110,000. We have done the bi-weekly plan, as well as, paid an extra $50 per draw. The APR is 7.125. Even with this we have 10 more years until it is paid off. We have paid 9 years so far.

    Should we refinance at 15 years, but continue this plan at a lower rate? The calculators look like it would take 7 years to pay verses 9 years, but is it worth the closing costs?

    Would it be better to up the $50 to $200 a month extra goes and forgo the refinance.

    I just need to have someones else think this through for me! Thanks

    I would refi in a heartbeat. I did some number crunching and it looks like your current mortgage payment is about 741 of which a whopping 560 goes towards interest. If you refied to a 15yr loan at 3 percent then your payment would be 441 with interest only amounting 160 per month. -f I were you I would refi but keep paying the same amount that you do now. If you did that then it would be paid off in 7.5 yrs.

    Also, look into mortgage brokers for refis. We recently refied our house and had very little in closing costs (900 bucks) for a 255k loan. Often you can take a slightly higer rate and they will waive all closing costs. I shopped on Zillow and was very happy.


      Thank You!!

      Thank you! I couldn't decide what to I have just been sitting on the fence.


        If you plan on staying in the same home, I'd refi to a new 10 or 15 year mortgage for the balance owed.

        You say you've got about 10 years left, so a new 10 year mortgage sounds reasonable, and will prob have the lowest interest rate of the refi options.


          It may be difficult to find a refi for that small balance. We tried and the closing costs were prohibitive. They won't make enough on interest, so they charge more, it seems.



            I called our mortgage company to see if they could lower the interest since we are good customers. Nope, got to refinance; but did talk to representative for actual maturity date. It is only 8 years. So, refinancing doesn't make since with what we are doing because we would pay off in 7yrs 5 months vs. 7 yrs 11 months.