Did
you get a 30 yr loan? Consider a 15 yr instead!!
Original Loan - $90,500 - 30 yr with
5.25% interest rate in 2004
Balance
left on loan in 2013 (21 years left) - $75,786.91
Mortgage
Payment $499.74 (does not include Insurance and
taxes)
Around $110 of your payment is going toward the house.
Around $110 of your payment is going toward the house.
$49,787
left in interest
Pay
off in 2034
Refinance $75,786.91 (balance of loan) - 15 year at 2.8% interest rate in 2013
New
Payment of $516.11
Now around $350 of your payment is actually paying down the loan.
Now around $350 of your payment is actually paying down the loan.
Interest
with new loan $17,113
Pay
off in 2028
Overall you pay your house off 6 years earlier and save $37,152
(I think you can find something to do with this savings!!!!)
(I think you can find something to do with this savings!!!!)
Things to Remember:
There
are closing costs associated with refinancing – 2%-3% of loan
(Be sure you stay long enough to recoup the costs.)
(Be sure you stay long enough to recoup the costs.)
You
might can drop your PMI (if that is around $50/mth)
If you take this and put in an extra $50 toward your principal you can then pay your mortgage off in 13.5 yrs.
If you take this and put in an extra $50 toward your principal you can then pay your mortgage off in 13.5 yrs.
Got
more questions, ask me. I would love to help!
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