Should I refinance my mortgage? Please advise (2014, 1%, fees)

[Wordsmith12]

I bought my 2/2 condo in 2014 for $145,000 (30-year mortgage). The lender required I pay 25% down.

The payoff amount for the mortgage is currently around $75,000.

I locked in a 4.25% interest rate when I purchased the property. I know the rates are really low right now, so I'm wondering if I should refinance to a 15-year mortgage.

Any tips?

Thanks in advance.

[bobspez]

Originally Posted by Wordsmith12

I bought my 2/2 condo in 2014 for $145,000 (30-year mortgage). The lender required I pay 25% down.

The payoff amount for the mortgage is currently around $75,000.

I locked in a 4.25% interest rate when I purchased the property. I know the rates are really low right now, so I'm wondering if I should refinance to a 15-year mortgage.

Any tips?

Thanks in advance.

If you can afford the payments then go for it. Your mortgage gets paid off 8-9 years early and you should save 1% per year in interest which should be about $18,000 over the remaining 24 years of your 30 year mortgage.

[GoldKona]

I would definitely pay any other debt first and be sure I am funding retirement accounts to the max. If you need that money at a later date the bank will charge you a lot of money to free YOUR money. You do not want to be house rich and cash poor. Also equity in your house is deemed less valuable than cash in more liquid assets. Financially you will probably be better off to do a cash out refi to the max that you can handle the payment over 30 years.

[davebarnes]

Yes, you probably should re-fi.
30-year loan for payment flexibility
3%
zero points

But, first, call your current lender and ask about "re cast"

[Wordsmith12]

Originally Posted by davebarnes

Yes, you probably should re-fi.
30-year loan for payment flexibility
3%
zero points

But, first, call your current lender and ask about "re cast"

Wouldn't switching to a 15-year mortgage save me loads of money in interest over the long run (as another poster pointed out)?

[GoldKona]

Originally Posted by Wordsmith12

Wouldn't switching to a 15-year mortgage save me loads of money in interest over the long run (as another poster pointed out)?

Maybe but at great cost. What would you rather have, $100,000 cash in 2020 dollars or $421.60 dribbled out to you for 360 months?

[Flamingo13]

Seems like you should be asking in personal finance thread.

[MidValleyDad]

Originally Posted by Wordsmith12

Wouldn't switching to a 15-year mortgage save me loads of money in interest over the long run (as another poster pointed out)?

Nothing to stop you from making extra payments and paying off early. But you have the flexibility if run into temporary financial difficulties of stretching the payments out.

[NORTY FLATZ]

Originally Posted by MidValleyDad

Nothing to stop you from making extra payments and paying off early. But you have the flexibility if run into temporary financial difficulties of stretching the payments out.

Good point.

[DKM]

You were making many extra payments so far to get it down in half in 6 years. I advise not refinancing because the fees will be too high for a 75k 15/yr loan.