Refinance or just continue paying extra??????????

[redgtxdi]

Kinda' wonderin' if I shouldn't jump since short term rates are going up but long-term rates are still down..............

Currently in a 15yr @ 5.75% started back in Jan '02, so about 3 years in. At the end of '03 finished payin' off a vehicle so split that extra money between pleasure & "overpay" toward the mortgage.

I *think* the only way I'd wanna do it at this point is if I get into a reeeeally low interest 10yr loan, but still dunno if it's even worth it!

Anybody got opinions???????

(Let's say $100K left on loan balance)

 

[Vic]

Keep what you have and just pay extra. At this time, 10 year fixed rates are not low enough (from what you already have) to justify refinancing.

 

[vi edit]

Keeping your current rates, you will pay right around $50,000 in interest over the life of the loan without any additional payments.

Putting down an extra $150 a month will turn that into an 11 year loan and only paying out around $37,600 in interest.

A 15 year loan at 5.1% interest will rack up $33,000 in interest + the refinance costs.

It's really kind of a wash. Ultimately comes down to refinance costs and just how low of a rate you can get.

 

[redgtxdi]

OK, that sounds about right. At the rate I'm goin' I hope to have the sucker paid off sometime in 2014 so a 10yr would have to prove some seriously significant savings to better that or it ain't worth it, imho!!

I crunched the #'s over on an interest rate calculator & come up w/ something like this.........

15yrs @ 5.75% = 58,000 interest

15yrs @ 5.75% paying extra $200/mo = $42,000

BUT..........

10yrs @ 5.75% = $30,000 interest

??????????

(Edit: I should say I figured using $118,000 balance as of 12/2002 for the 15yr vs. $97,000 balance as of 10/2005 on the 10yr both using a 5.75% rate..........I'm guessing on these dollar amounts but they're fairly close)