Can anyone please weigh in on my options for refinancing my home? I have $59,000. left on my mortgage at 5.5% rate. The monthly payment (without escrow) is $568. My house is most likely worth about $275,000 in today's market. I'm one of those persons who is really really wants to pay off the mortgage asap (no talking me out of it: I am debt adverse) and hence have had myself on an aggressive paydown schedule for several years. At my current and sustainable rate of paydown--$850. on principle per month--I should be able to pay off the mortgage in Dec. 2015, four years from now.
From some quick calculations it looks like refinancing might be able to cut a half year off this payment schedule. Also from some things I've read, it may be best to go for a 5/1 ARM as I am very confident the mortgage will be paid off in 4 years. Does this sound like a good choice? Also, I see incredibly low rates advertised for 5/1 Interest-only ARMs. Would there be an advantage in going for one of these? In all cases I would continue to pay down the principle agressively, with the object of paying it off in 3.5 years.
Finally, can anyone recommend a bank and/or online source for low rates? My current mtge. is with a local credit union but they don't offer ARMS. I'm a little scared to step out of the box. Thanks.
From some quick calculations it looks like refinancing might be able to cut a half year off this payment schedule. Also from some things I've read, it may be best to go for a 5/1 ARM as I am very confident the mortgage will be paid off in 4 years. Does this sound like a good choice? Also, I see incredibly low rates advertised for 5/1 Interest-only ARMs. Would there be an advantage in going for one of these? In all cases I would continue to pay down the principle agressively, with the object of paying it off in 3.5 years.
Finally, can anyone recommend a bank and/or online source for low rates? My current mtge. is with a local credit union but they don't offer ARMS. I'm a little scared to step out of the box. Thanks.