Question by tlc289: Mortgage refinancing and fees – and prepaying mortgage?
Our current 30-year mortgage is at 5.25% but I think we could get it down below 5%. We’re about 5 years into this 30-year mortgage and haven’t missed a payment (and don’t expect to). Here are my questions:
A) Even if we got a loan down to under 5%, would it be appreciably different over the long-term from a financial standpoint?
B) Are banks in existence that would allow a couple to refinance and pay zero fees? Over the course of even 15 years, banks make a lot of money from interest… why charge someone a fee? I realize it’s not up to me.
C) If we maintain our 30-year mortgage… say we don’t wind up refinancing… does it save a person/couple a lot if they were to pay one or two extra payments a year? Loan amount 200k, interest 5.25%.
Any advice appreciated.
First responder: no, that site didn’t help. Why would you waste that 10 seconds of my life FOR me? Idiot.
Answer by HEATHER
It probably is not worth refinancing unless you are going to be able to drop down to 4.25% or so. Pay extra on your mortgage. Make sure you indicate on the mortgage payment coupon that it should go to “principal”.
Give your answer to this question below!