Reply to Would you refinance house in my situation?

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Reply to "Would you refinance house in my situation?"

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[quote=Anonymous][quote=Anonymous]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, [b]you could end up paying more interest despite the higher rate.[/b]

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. [/quote]

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.[/quote]

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