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Re-finance mortgage?

By Terry Savage on November 12, 2020 | Housing / Real Estate

Hi Terry – I attended your presentation last week at Uline. You mentioned we should look into refinancing our mortgages. My wife and I are both 64 and are planning to move in the next 5 years or so when I retire. We last refinanced in 2010, the loan amount was $223,600 @ 4.125%. Each month we have rounded up the payment from $1068 to $1100. Our bank (Chase) just offered a refinance at 2.625% for the remaining balance of $174,980 with no closing costs. The monthly payment would drop to $707. If we continue to pay $1100, I calculated that we could reduce the principal by over $700 a month. Seems like a no brainer. Am I missing something by starting again with a 30 year mortgage? Thanks, Jeff

Terry Says

It’s a great idea. BUT, ask them how much lower the rate would be in a 15 year mortgage. Do that, and then keep paying extra.

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