Would you refinance house in my situation?

[Anonymous]

Anonymous wrote:We didn't bother and are at the same rate, 5 years in. We are set to pay our loan off in 4 more years. we are so heavily paying down principal right now that the savings are really not worth the hassle. FWIW, our principal is not that high (for DC at least).

Well, without refi you're wasting ~2% *350K/12 = $583.33 every month for extra interest you're paying the bank.
It's good to be wealthy and don't worry about peanuts like that!

[Anonymous]

Anonymous wrote:Do you realistically think you can pay this off in 3-7 years? If so you will want to factor in how loans are structured. You always pay more interest in the beginning, and over time the balance of interest to principal shifts. So if you refinance now and pay the loan off in 3 years, you could end up paying more interest despite the higher rate.

What I would do is run an amortization table - to do this you need the original loan amount and start date.

http://www.bankrate.com/calculators/mortgages/amortization-calculator.aspx

See how much interest you are paying monthly now and compare the interest you would pay over 3-7 years longer of the current loan versus the interest you would pay over that same period if you refi.

The PP does not understand mortgages or amortization. This is incorrect. If you have a lower rate, you will pay less interest. Period. You need to take into account closing costs, and figure out break even on your refi.

[Anonymous]

Anonymous wrote:We owe 350K with 4.875%, 30 year, in our 6th year.
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We would like to pay it off in 3-7 years.
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Would we save money on monthly interest if we refi to 15 or 10 year mortgage?

Can someone point me to a website where I can calculate this?

thanks!

zillow has a refinance calculator http://www.zillow.com/mortgage-calculator/refinance-calculator/
Obviously it depends on the cost of refinancing when you now have the ability to pay off the whole thing in THREE years. If your payment increases monthly under a 10 or 15 year would you be better off paying down principal and getting rid of the mortgage in 3-5 years? If you went with another 30 and lowest possible rate/closing costs you could continue what you've been doing.

[Anonymous]

PP here-I would never do an ARM. That could be nasty business.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We didn't bother and are at the same rate, 5 years in. We are set to pay our loan off in 4 more years. we are so heavily paying down principal right now that the savings are really not worth the hassle. FWIW, our principal is not that high (for DC at least).

Well, without refi you're wasting ~2% *350K/12 = $583.33 every month for extra interest you're paying the bank.
It's good to be wealthy and don't worry about peanuts like that!

My principal is less than that and If you run the numbers with my tax situation, it is not worth it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We didn't bother and are at the same rate, 5 years in. We are set to pay our loan off in 4 more years. we are so heavily paying down principal right now that the savings are really not worth the hassle. FWIW, our principal is not that high (for DC at least).

Well, without refi you're wasting ~2% *350K/12 = $583.33 every month for extra interest you're paying the bank.
It's good to be wealthy and don't worry about peanuts like that!

It's actually 222/mo and I'd break even 30 months in. It is possible with bonus and kids emerging from daycare that we could be done at the 3yr mark.

[Anonymous]

Anonymous wrote:We decided to refi to 15 year fixed.

Anyone have any recs with who to go with?

OP here

I just refinanced with First Home Mortgage. Everything went well.

[Anonymous]

I've used Brad Cohen a number of times and he always gets us the lowest rate possible.

[Anonymous]

We have refinanced twice with BMIC. They are excellent.

http://www.bmicmortgage.com/default.aspx

2.5 years to go on our 15 year mortgage!

[Anonymous]

I'm at 5.875 but underwater. Stuck.

[Anonymous]

It is principle not principal. Morons.

[Anonymous]

Regarding to people that said it is not worth to refi as they will pay it off soon 2-5yr (30 year)--you do know that if your income is on the higher side you do NOT get much of a tax break for mortgage interest?

[Anonymous]

Anonymous wrote:It is principle not principal. Morons.

Incorrect.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We decided to refi to 15 year fixed.

Anyone have any recs with who to go with?

OP here

I just refinanced with First Home Mortgage. Everything went well.

Rick Knapp Wells Fargo.
Used multiple times. Got his name from friend who is real estate/settlement attorney.