stephenandrew
Recycles dryer sheets
- Joined
- May 5, 2007
- Messages
- 148
Hi--I have been lurking here for about a year now--I always enjoy dropping by and seeing what folks here have to say. Based on what I have seen, I figured I might get some help with my question....so, here goes.
I currently have a mortgage balance of about $84,000. My rate is 5.25%, and I have been paying extra principal each month (a bit over $1000 extra). If I continue on this path, I will have the house paid off in 34 months. If it matters the house is probably worth $270,000 and I have no other debt, and I am maxing out my 401-k. It occured to me that I could dramatically increase my cash flow, and potentially be able to leverage the money the bank is lending me, by refinaincing my mortgage to a 30-year fixed rate. A back of the envelope calculation would make my payment about $521/month (P&I only on a mortgage of $84,000). My current P&I payment (including the extra principal) is $2673. So, it would appear I could free up about $2100 per month. Over a 30 year period, I figure I could conservatively make 8% on my money---hopefully more. I have always wanted to be debt free, and paying off the house would feel great, but am now wondering if I would be better off extending the term of my mortgage. Any help/recomendations would be appreciated. Thanks!
I currently have a mortgage balance of about $84,000. My rate is 5.25%, and I have been paying extra principal each month (a bit over $1000 extra). If I continue on this path, I will have the house paid off in 34 months. If it matters the house is probably worth $270,000 and I have no other debt, and I am maxing out my 401-k. It occured to me that I could dramatically increase my cash flow, and potentially be able to leverage the money the bank is lending me, by refinaincing my mortgage to a 30-year fixed rate. A back of the envelope calculation would make my payment about $521/month (P&I only on a mortgage of $84,000). My current P&I payment (including the extra principal) is $2673. So, it would appear I could free up about $2100 per month. Over a 30 year period, I figure I could conservatively make 8% on my money---hopefully more. I have always wanted to be debt free, and paying off the house would feel great, but am now wondering if I would be better off extending the term of my mortgage. Any help/recomendations would be appreciated. Thanks!