Once again 30-year mortgage rates are at record lows, 3.56% to be exact. It seems like this happens every couple of weeks. This time I was bored enough to see what kind of impact a refinance would have on my mortgage.
My current mortgage is a 30-year at 5% with $158,000 outstanding and 29ish years left which is a monthly payment of about $858. Using this handy refinance calculator, I would save $129.37 per month and $45,019.31 in interest over the life of the loan. Now the question is, will it be worth it. When we purchased our house we payed $2,300ish in closing costs. Which means it would take 18 months to recoup the cost of refinancing and then we would be pocketing that $129.37 every month for the next 27 years. Sounds like a pretty easy way to save some money.
One problem for me and Mrs. K, we are lazily looking for land to build a new house. So it's kind of a gamble on whether or not we would still be here (in this house, not dead) in the 18 months it takes to make back the closing costs on a refinance. However, if it wasn't for that, we would be refinancing as I speak...err type.
What is your mortgage situation? Have you already refinanced recently or are you looking into refinancing now? Or have you given up on the whole home ownership thing?
No comments:
Post a Comment