Looking for some advice from people much smarter on this than me:
Current financing: 3.62% on a 30 year loan, 306 months (25.5 years) left on current balance of 264,000. Current payment is $1,313 a month with total payments to be $401,909. Home located in Chicago Suburbs
Called my local broker who I originally got the loan through and this was his offer on current rates:
Proposed New Mortgage Amount $264,000.00 Proposed 30 Year Rate 3.000% --new payment would be $1,113; Total savings: $1,217 Proposed 25 Year Rate 3.000% --new payment would be $1,251 ; Total savings $26,334 Proposed 20 Year Rate 2.875% --new payment would be $1,447 ; Total savings $54,468 Proposed 15 Year Rate 2.625% --new payment would be $1,775 ; Total savings $82,247 Closing costs about $2,100. Ouch, seems high.
Are these rates good? I haven't shopped around yet and wondering if I should.
I am a teacher with about 15 years left before retirement so job is steady. Three kids ages 6,4,1. Spouse is stay at home mom. Currently have saved about 370K spread between Roths, 403b, and emergency fund.
**Update -- I did some shopping at Loan Depot and Better Mortgage. They were able to to a 15 year at 2.375% with closing cost ($2154) rolled into loan and and a credit to me of about $200 at close. I showed this to my local lender and he said he would match it (he was offering 15 year at 2.65%). I would rather stay local if I can.
This would take my current payment from $1313/Month to $1754/Month but save me about 90K compared to staying in my current 30 year loan.
Submitted November 20, 2020 at 09:27PM by dva79 https://ift.tt/3kQWvJR
