Mortage Refinance Math?
Okay, how does this work? (Numbers are made up; I'm looking for the underlying math.)
Assume I took out a $200,00 30-year fixed mortage at 6% several years ago, have been making extra principal payments, and the statement now shows that I have ten years to go if no more extra principle payments are made.
If a ten-year fixed mortage at 6% is available with no closing costs, if I refinance with it for the remaining principal balance, do I come out ahead, exactly even, or behind? How does the math work on this? :confused:
TickTock Rule Of Finance - heavily discount any promises of money/benefits to be paid to you in the future
"I've traded love for pennies, sold my soul for less" -Jim Croce, Age