Q: We have a 30 year at 5.875% since 2003, with about $290,000 left on the mortgage. We are planning on staying in this house for about 5 more years. Does it make sense to refinance?
A: Certainly! However, with a short time horizon, it can be a little trickier. You should use our Tri-Refi Refinance Calculator to help you determine how best to approach your refinance, whether paying costs out of pocket, using a little equity to pay for them or building them into the interest rate. There are a number of approaches and a number of mortgage products (including certain ARMs) you should consider, but there is no doubt that you can save thousands of dollars in interest costs over the next five years with a refinance.
- What is a home equity line of credit?
A home equity line of credit is a type of second mortgage that allows homeowners to borrow money using their home as collateral.
- What is a home equity loan?
Homeowners with equity in their property can take out a home equity loan that uses their home as collateral.
- What is a rate and term refinance?
Homeowners have a variety of reasons for refinancing and each reason can indicate that one refinance option or another makes the most sense.
- Are ten-year fixed-rate mortgages (FRM) available anywhere?
Sure! Virtually all lenders who sell product to Fannie Mae or Freddie Mac will be able to offer you mortgage with a 10-year term. However, interest rates are usually the same as the lender's 15-year offerings.
- Can I get copies of checks from a past refinance?
It's not going to be easy, that's for sure.