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    Socalstarter's Avatar
    Socalstarter Posts: 65, Reputation: 1
    Junior Member
     
    #1

    Apr 11, 2017, 10:54 PM
    Refinance mortgae?
    I own my house for 9 years my debt is 145... k with a 5% interest in a FHA loan. I would lile to refinance to take years to my loan no to get any money. I have an equity of more than double what I owe. Is it a good idea to refinance?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #2

    Apr 12, 2017, 03:41 AM
    Probably not at this point. Interest rates at this point are around 4%. So you really aren't going to save much. That being said, you should shop around to see if you can find a better rate.

    But if your only goal is to pay your mortgage off earlier. Then just increase your monthly payments. You can use an amortization schedule (Excel has one) and calculate how much more you need to pay per month to payoff your mortgage by the date you want. Anything you pay over the regular payment goes to reducing the principle balance. This then reduces the interest due per payment, so your loan is paid off earlier.

    You can do what if games with a spreadsheet based amortization schedule to figure out how much to pay.
    talaniman's Avatar
    talaniman Posts: 54,327, Reputation: 10855
    Expert
     
    #3

    Apr 12, 2017, 06:04 AM
    Shop around to see if it's even worth considering. I know a few people who refinanced their mortgages from a 30 year, to a 15 year mortgage, and were quite happy with the long term savings.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
     
    #4

    Apr 12, 2017, 06:30 AM
    'I would lile to refinance to take years to my loan '
    What does that mean? EXTEND the years or shorten them?

    If extend, and it fits your situation to do so, then do so. But only if all of the calculations look good for your needs.
    ma0641's Avatar
    ma0641 Posts: 15,675, Reputation: 1012
    Uber Member
     
    #5

    Apr 12, 2017, 09:46 AM
    Using your information and assuming a 30 year, going to 4% saves $86 per month. With that limited saving and additional refi costs, it would take you a long time just to get back to where you are now. Just pay an additional Principal only @ $50 and you will drop your time substantially.

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