Let’s say you purchased your home 2 years ago with a mortgage for $250,000 with 5.99% interest rate. On a 5 year term / 25 year amortization, your monthly payments would be $1598.03. If you were to continue with that same mortgage, at the end of your 5 year term would have an outstanding balance of $224,560.11. Of the $95,881.80 in payments you will have paid, $70,441.91 would be interest.
If you were to refinance the remainder 3 year term, with the 3 year rate currently being 2.90%, your payments would be reduced to $1126.86 (a savings of $471.17 a month). Your outstanding balance would be $220,110.99 at the end of the term (a savings of $4449.12). From your total payments of $78,919.68, $58,316.13 would go towards interest (savings of $12,125.78).
Although you may have to pay a penalty to get out of your mortgage early, the amount you can save over and above that is substantial!
For those currently locked in at higher than desirable interest rates, it is worth taking a look at the different options. There is NO COST and NO OBLIGATION. You have nothing to lose, but a lot of money to gain!
If you were to refinance the remainder 3 year term, with the 3 year rate currently being 2.90%, your payments would be reduced to $1126.86 (a savings of $471.17 a month). Your outstanding balance would be $220,110.99 at the end of the term (a savings of $4449.12). From your total payments of $78,919.68, $58,316.13 would go towards interest (savings of $12,125.78).
Although you may have to pay a penalty to get out of your mortgage early, the amount you can save over and above that is substantial!
For those currently locked in at higher than desirable interest rates, it is worth taking a look at the different options. There is NO COST and NO OBLIGATION. You have nothing to lose, but a lot of money to gain!
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