Question by AbeJ: mortgage refinancing vs home equity loan?
I have a mortgage balance of $ 75000 to payoff, 8 years remaining.
Would it make sense to take a 15 year home equity loan to pay it off and reduce my monthly payment? My other option is to refinance to 15 year term from current APR of 6 % to a new APR of 5% with a closing cost of $ 2500
Answer by Jill
You are on the home stretch, you’re just paying principle now. A refi of any kind does not make sense… UNLESS you NEED to do a refi to make the monthly payment lower. If that is the case, just bite the bullet and get the best deal you can. You could even look at getting a 30 year and just know you plan to pay it off in 10 or 15 years on your own. Ask for all your options.
What do you think? Answer below!