My mortgage company reached out to me today, my PMI is finally paid off. We were paying $2500 a month, including taxes, pmi, homeowners insurance and mortgage principal. PMI was $228.99 a month. My new payment will be around $2271.
They also told me if I was interested, interest rates were favorable to refinance. Currently I have a 30 year with 27 years left at 4.25% interest. Their options are I can do a 20 year loan at 4% and a 15 year loan at 3.5%. They calculated if I did a 15 year loan, interest saved would be $116,693 over the life of the loan. The new payment would be $2800 total including the same as above.
They also have a program where they said they have "credits" with their lenders, so refinancing would cost us nothing, all we have to do is sign the paperwork. I am very interested in doing the 15 year mortgage an extra $300 I can easily afford at this point.
I was wondering if you believe this is a good idea? Anyone with experience with this, is there any drawbacks to doing this? I am 30 years old so instead of paying off my mortgage when I am 57, it will be paid off when I am 45. Sounds almost too good to be true. Any advice?
Submitted August 01, 2017 at 09:56AM by mattyfresh209 http://ift.tt/2whLb0j
