Mortgage Refinance - Mortgage Company Called and offered it?

[Tactically Fat]

You're thinking of the cosmetically challenged highlander!

That too!

Ever get the Escape started? heh

 

[Landon]

We will be in this house 20+ years and hope to pay it off in 12-15 by paying extra principal.

If you can swing it an pay it off in 12-15 years, you should look at a 15 or 20 year mortgage. If you going to refinance you can significantly reduce your interest rate by going to the shorter term.

 

[Rocketscientist]

Ehh.. I don't think I would trust that offer at face value. It reminds me of a car sales ad. No matter how good it seems, they are in the business to make money, not to help you. The offer HAS to contain something that will make them more money. I would go consult face-to-face with an independent mortgage broker. They have no skin in the game. Pick their brain a bit. Have them crunch the numbers. They may say it's a good deal! They may have a better way you didn't know about. At least you'll know for sure.

 

[Leo]

Unless you are upside down or have a crazy high mortgage rate, almost anyone would more greatly benefit from placing all the extra fees and costs on a principle payment against the morgage you already have. The only refi that was a good business model was to go from a 18.5% FHA mortgage purchased when Jimmy Carter president to a 9.5% mortgage the second year of President Regean. I paid off that 30 year mortgage in a little over 7 years.

I do not even get too excited about 15 years vs 30 years. If you have a 30 year mortgage, put an extra few hundred against principle every month. That will pay it off way quicker than a refi will get you. I have not seen a mortgage with a pre payment penalty for at least 35 years, I do not even know if they still exist, but I woud never have agreed to one.

 

[MikeDVB]

we have a 15-yr mortgage. Our principle payment is considerably higher than the interest payment every month and has been since inception. Completely opposite from our first house when I had a 30-yr mortgage. Loving it. The rate of 2.75% helps too

Consider a 15yr if you can. Salin Bank has a 3% 15yr note right now.

I would love to pay more to principal than interest and have it done in 15 years. I'll give them a call and ask them - we'll see if I can get a lower rate out of it as well.