Refinancing?

[gilby959798]

I am thinking about refinancing my mortgage from a 30yr loan 4.25% to a 15 year loan and 3%(or so). I am in the process of redoing the garage so I believe I will have a little more equity in the home (right now its about 10%). When I do the calcs it will save me about $55000 (or a newer GT500 ) in interest over the life of the loans. I was wondering what others thoughts were on this and if it is worth it before I go through the process. I have great credit (>780), steady job, I am only 26 and the only other debt I have besides the house is student loans (<$5000), her car payment, and a small loan I had to take out for the garage (~$6500, 0% for 12 months). I am an electrical engineer making a little over $50k a year but already have 160 hours of OT this year (paid time and a half for OT) and its not letting up anytime soon. Trying to do the right thing and save as much as I can!

 

[AntiHeightPunk]

i would refinance for 30 years again and get a lower rate and treat it like a 15 year loan, that way if you ever are short a month or have any surprises you are cash rich.

 

[gilby959798]

Oh I am also going to lease my land for oil and gas so I am hoping to get over 15k for my sign on bonus that some would go directly toward the house. I've been offered 3250 per acre already (5 acres total) and I am doing my due diligence. I would probably take 2/3 towards the house and the other in savings for my rainy day fund.

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[GM Nitemare]

If you feel that you can afford the payments, i'd go for it. The idea of keeping it a 30 year mortgage and then lumping money against it rarely works. Do it and you'll be happy you did. I went from a 15 year down to a 5 year mortgage 2 years ago. Payments are steep. But only 3 years left...

 

[01Jes]

i would refinance for 30 years again and get a lower rate and treat it like a 15 year loan, that way if you ever are short a month or have any surprises you are cash rich.

Good advice!