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I apologize if this is elsewhere (I DID search). I'm basically a novice on the mortgage thing. Should we check into refinancing the mortgage (have to check exactly but about 16-17 yrs. or so left and not alot, maybe $70K) - currently at 7%. Would it be worth it to check w/credit union? (we'd want a VA also if they offer it and it offers any bennies). I'd appreciate any ideas pros/cons.
If you refinanced to 5.5%, you'd probably drop $100 in interest a month, and you could easily shave a year off your mortgage with the same payment if you went to a 15-year note which should cut your interest by another half-point.
Thanks for your insight - I really need to learn more. I thought at this point we are probably paying mostly principal (my thinking though was to check into 15 yr.) - I'll take whatever tips I get, talk to friends and see how the credit union is.
Call up your credit union and see what the rates are. If they have an online site you can even do it online and put in numbers and it will give you a ballpark figure.
My CU has 4.875 for 30/fixed. I'm in the process of refinancing. Going for a 30 year as opposed to a 15 to have a lower payment. I always pay additional principle so the 30 year vs the 15 didn't matter to me. I was more concerned with getting lower payments as who knows what next year will be like and I wanted a more affordable payment "just in case".
BTW..the old mortgage was in year 10 of a 30 year fixed but I had paid off 50% of the principle through additional principle payments each month.
I did a preliminary call to the credit union: 4.947% (15 yr.) straight refi of 1st mortage, 5.144% for refi of both 1st and 2nd (2nd is w/them). We'll probably check into this.
Hold on... don't do anything so rash just yet... you said you had 16-17 years left on a mortgage? Was that a 30 year mortgage or was it less? The reason is because interest rates are front-heavy, meaning the first few years is almost all interest rates which will affect what you have "left" to pay... after that it will be prinicipal heavy at which point, you should not refi at all... so check your math before you jump the gun... when you refi, your interest rates "reset" so that it is front-heavy again... which means you could possibly pay MORE interest with a refi even though it is a lower monthly payment... that's why its not for everyone... sure some people argue you could get a tax deduction but it isn't necessarily beneficial because you are still "paying" more than "normal", with the tax advantage you are only recouping SOME of the costs (not all of it)...
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