I refinanced 4 years ago for 15 yrs.Would I be better off refinancing for 30 yrs and paying more on my principal each month?
2006-12-11 08:56:41 · 5 answers · asked by danm 1 in Business & Finance ➔ Personal Finance
I am trying to free up cash flow. My monthly note , I pay every 2 weeks about 900.00 a month. I was jsut wondering if I am really benefiting with a 15 yr mortgage. Would paying extra on principal each month be just as good.
2006-12-11 09:28:52 · update #1
Check out: http://homerefinance1.blogspot.com They have good information on refinancing a mortgage and more.
http://homerefinance1.blogspot.com
2006-12-14 01:07:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You would need to look into what the interest rate you would pay on the 30 year loan now would be versus the rate on your current 15 year loan. In my opinion, depending upon your financial position, it is better to do the 30 year loan and pay more in principal each month. That way, if your financial situation changes, you can drop the additional payments to free up cash to get you through until you can make the extra payments again. Under a 15 year loan you must make the higher scheduled payments or risk going into default, losing your house and ruining your credit rating.
**Based on your new information that you are trying to free up cash flow, then it sounds like you are better of refinancing for 30 years. (Again, be careful what will happen to your interest rate, because rates have gone up over the past four years.) If you have two identical mortgages, with the only difference being 15 yr vs 30 yr, and you make additional principal payments on the 30 yr loan equal to the payments at the 15 yr term, you will still pay the loan off in 15 years. However, you would have additional cash flow free to use for other needs if you have to skip that extra payment for a time.
2006-12-11 09:04:28 · answer #2 · answered by Christopher S 4 · 0⤊ 0⤋
It depends on the interest rate you have & your financial future. You could make 1 extra payment per year and pay the mortgage off earlier. What state are you in? You may qualify for an FHA loan. This is generally a low interest rate loan that is fixed for 15 or 30 years. email if interested to: mrobertson@advancemtg.com
2006-12-11 09:24:41 · answer #3 · answered by mortgage_man06 1 · 0⤊ 0⤋
I am a mortgage broker.. what are you looking to do? well, a 30 year will make your payments lower, and of course a 15 year you would pay off your loan faster. what are you looking for?
2006-12-11 09:15:18 · answer #4 · answered by 12345 1 · 0⤊ 0⤋
if the interest rate is the same, and the monthly payment is the same.
there is no different if you extend your amortization schedule back to 30 years. I will helps you when you need a guaranteed lower payment.
2006-12-11 09:01:28 · answer #5 · answered by davidkwankwokfai 3 · 0⤊ 0⤋