mortgage question

so1966 · May 2013

i am really working on reducing my house payments or reducing the mortgage length. we currently have a 30 year mortgage with interest rate of 4.75 and outstanding balance of 168,000. our taxes are around 7-8k. i am reducing the length of the mortgage by doing bi monthly payments, so we'd pay off in 25 years or even less...

i see current fixed interest rates at around 3.5. i'm thinking it's worth re-financing and maybe even reducing to a 20 year or 25 year mortgage? did anyone put a lump sum down before refinancing...say around 10-20k?... to reduce the outstanding loan amount balance?..

any info appreciated!... i'm clearly no finance guru, but clearly do better than my husband:):)

Neener73 · May 2013

Have you used a mortgage calculator to figure out if you can swing the payments for a 20-year mortgage? There are also refinancing calculators that will show how much you'll save in interest by refinancing. Of course, you have to subtract the refinancing/closing costs to get an accurate picture.

smerka · May 2013

We have similar numbers. We refinanced about a year into our original mortgage to 4.625 thinking there was no way rates would go any lower. We actually paid some points to get the rate down. Bringing too much money to the table might cause you problems because from what I understand there are a different set of rates for mortgages less than $150,000, if you can find a bank to do a mortgage for less than that. So if you have a big chunk of money to throw at the mortgage, I would either try to pay down the rate with points or throw the money at it after you refinance.

mortgage question

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