MORTGAGE RATES ~ 20 Year vs. 30 Year.
Time to Refinance??? A case study.
Refinancing with a 20 year mortgage does make sense. When refinancing you want to take a look at monthly payments, percentage rates, term of loan and then at total cost of loan and total interest payments of loan. If you take a look at the example down below you can see that with lowing your interest rate by 1% and the length of time (term of your loan) of the loan, you can save thousands of dollars. Check with your local Mortgage Broker, Mortgage Banker and Lending Institutions for terms, conditions and rates of current mortgage loans. 20 year mortgages tend to be a 1/8th of a point lower than a 30 year mortgage, check with your local banker.
The case study below is just an example and includes principal & interest payments (P&I), taxes and insurance payments are not accounted for. The example below is based on refinancing after having the original mortgage for six years. Whenever considering a refinance you should consult your personal Certified Financial Planner (CFP) and Certified Public Accountant (CPA) for your individual needs and situation.
** The Principal & Interest Total and the Interest Total is if you keep the full life of the mortgage from start to end.
*** If you keep the original 30 year mortgage at 5.5%, over the next 24 years your Total Principal & Interest payments will be approximately $654,094.
For more information and tips on shopping for mortgages see below:-
8 Ways to Reduce Mortgage Closing Costs ~ WiseBread Article Oct '13.
This article has been written by David Popoff.
David Popoff | Broker
Direct Line: 203-228-0646
DMK Real Estate is a full service license Connecticut Real Estate Broker firm that serves lower Fairfield County. With lower overhead costs DMK Realty can fulfill buyers and sellers needs locally and on the internet at lower costs compared to the larger national brands.