Mortgage Refinance Questions

[younginvestor2013]

Also, I have no other debts, just my mortgage.

[ivinsfan]

What ever works for you.....my problem would the higher interest rate on the entire mortgage that you pay over 30 years to get that 20K..you are going to need a higher return to break even due to that number.

[younginvestor2013]

The interest rate on the new cash out refi mortgage, for whichever term I go for (30/20/15 years) is lower than my current mortgage.

[ivinsfan]

Of course, but the lowest rates are for the refi only not the cash out, which was what I was referring to...the cashout option will cost you more in interest. But I think you are looking for nods to the cash out and aren't really even considering the refi only, so I am going to stop posting to this thread now. Either way you are doing fine, so good luck, just as a point of interest, keep us posted on the 401 and some markets returns if you end up going that route.

[tulak]

I would pick the loan with the lowest interest rate and skip the cash-out. Why pay more in interest?

I'd also select the term based on how long I plan to live in the condo. If I'm going to be there 10+ years, then I'd go with the 30 year loan. If it was a shorter time frame, I'd do a 5/5 ARM through PenFed CU.

But it sounds like you may have already made up your mind to take the cash.