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Should I refinance for 30 yrs or 25 yrs

I have been in my home for 5 years. I have a mortgage of 234,000 @ 6.25%. The value of my home has dropped to $254,000.I know I can qualify for a 5.2% mortgage based upon my credit score of 670Should I refinance for 25 years or 30 years? by chips3_302_332 from Braselton, Georgia. Nov 22nd 2011 Reply


Mike Burns (EmeryFCU)
#35 ranked lender in Kansas - 2 contributions

Hi,My best advice is to refinance into a 30-year mortgage and here are a few reasons why:#1 - The probability of you actually paying on that same mortgage for another 25 years and paying the house off is extremely low. You will most likely move or refinance your mortgage in that period of time.#2 - You get no rate discount by choosing a 25-year mortgage. This means that you lock yourself into a higher minimum monthly payment with no real benefit other than paying your balance down slightly faster. I would suggest locking into a 30-year mortgage. You can always make the 25 year payment with no penalty, so you can accelerate the equity in your home by paying more then the minimum payment on a 30-year mortgage. You also have the luxury of making the minimum if an unexpected expense comes up. If you are at 6.25% currently, you should definitely take advantage of these low rates. You mentioned 5.2%...you most likely qualify for a rate much lower than that. Please call me directly and I will be happy to give you an accurate quote.Thanks,Mike Burns913-396-1911

Nov 22nd 2011
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Hi. If you would like to continue to move forward on paying your mortgage balance down than the 25 or maybe even a 20 year would be a good option for you if you want to stay on pace or move ahead of where your currently at. If you looking to free up cash flow than you should do the 30 year and you can always apply additional principal whenever you choose to pay down the loan faster and catch back up to where you left off. There are no prepay penalties on any of the loans we do. You mentioned rates of 5.2% but rates are much lower than that right now. Please give me a call when you have a chance and i would be happy to send you out a free proposal to review. We are a bank and not a broker and we don't collect any money from you to do a mortgage so there is no risk to you. Rates are in the low 4,s right now on the 30 year. My contact number is 1-800-793-9633 x 175. Steve D'Andrea

Nov 22nd 2011
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Marcus Buchanan (mbuchanan)
#310 ranked lender in California - 28 contributions

Greetings, The gentleman that responded first is correct. Could you send me an email to mbuchanan@paramountequity.com, what i can do is send you a nice spreadsheet that breaks down the excelerated payment for you. Im not licensed to do loans in GA so please contact the gentleman Mike Burns. Marcus

Nov 22nd 2011
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Ignacio L Taboada (itaboada)
#49 ranked lender in Georgia - 23 contributions

If you can qualify and you can afford the payment you should go to 20 Years.In order to give you an accurate you will need to call me because of the credit score.If you can qualify under special refinance programs your rate for a 20 years could be as low as 4.25%If not take the 30 year rate.

Nov 22nd 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

You should shop around.. 5.2% in today's market is very high... if your going to refinance, there is ZERO difference in a 25 year interest rate vs. 30 year interest rate. If your interested in paying off your mortgage faster, you might want to consider a 15 year mortgage.. there will be a major difference in that rate vs what your paying now.. you might even be able to keep the payment about the same as your paying now... WilliamAcres.com

Nov 22nd 2011
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Brian Allen (ballen)
#43 ranked lender in Maryland - 191 contributions

The rate seems high even 5 years ago don't make the same mistake look 20 year is slightly beeter than a 30 year so I'm not in favor of doing a 20 year 30 will provide you savings and and if you stay and want to build equity make extra payments. Best service and attractive rates contact me at ballen@accessnational.com.

Nov 22nd 2011
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J Martin (jmarr91)
#11 ranked lender in Georgia - 25 contributions

Refinance... absolutely. 25yrs or 30 yrs will determine whether you're looking to pay it off sooner or just refinancing for a lower rate. Don't settle for 5.2% there are definitely lower rates out there!

Nov 22nd 2011
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