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Should I refinance into a 15 year or 30 year? current rate is 5.5%

I bought a house in 2009 for 185,000 at a rate of 5.5%. I am now interested in refinancing to a 15 year FRM with no cash out. Right now my monthly payment is 1400 and if I refinance it will go up to 1550, including insurance and taxes. Now if my math is correct, I'll be paying 27k more over the next 15 years per month but the loan will be done 13 years sooner. Would I save money going this route or would it be better to refinance into another 30 year? by darryl_166_259 from Denver, Colorado. Nov 10th 2011 Reply


John Jarvis (jjarvis)
#38 ranked lender in Colorado - 2 contributions

If you can swing the high month pmt do the 15 yr loan. It will save THOUSANDS over the life of loan. If yu wnat real numbers call me.John Jarvis Denver Mortgage Company 720-732-2705

Nov 10th 2011
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Crestico Funding (CresticoFunding)
#3 ranked lender in California - 339 contributions

Darryl,Your calcualtion for a 15 year loan seem correct. if the additional $150 a month is not a strech in your monthly obligation it is strongly recommended to refinance your loan. if you need any additional help or info please do not hesitate to email us.

Nov 10th 2011
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Merritt Noel (MerrittNoel)
#29 ranked lender in Colorado - 7 contributions

I ran the numbers on the 15 yr option with original loan amount at $185,000 (which probably was not the case but wasn't sure) at current market rates you would save roughly $135,000 in interest savings. It is a no-brainer in my opinion. I would be happy to speak with you further to give you some concrete numbers. We are currently offering clients a No Cost Refinance option which will help you realize the benefit from day one. That's right we will pay your closing costs. I look forward to your contact.Merritt Noel - 720-936-2339American Liberty Mortgage, Inc.www.almortgageinc.com

Nov 10th 2011
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Mike Trenkle (MikeT@MKMortgageGroup.com)
#21 ranked lender in Colorado - 12 contributions

Going to a 15 year loan will definitely save a tremendous amount of money in the long run. Although it may be beneficial to go to a new 30 year loan with a lower payment and pay extra each month to compare to a 15 year payment. Besides saving you tens of thousands of dollars (and paying off in less than 15 years) if you make the higher payment, it also gives you the flexibility to not only capitalize on the very low rates available today, but it also goves you the ability, if need be, to return to the lower 30 year payment if you ever need the extra cash. In this market, options are everything. The more options you have the better.Give me a call with any questions and I can show you the breakdown for any of these options.Mike 303-537-4539 MK Mortgage Group LLC.

Nov 10th 2011
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Nic Netherton (ColoradoLender)
#16 ranked lender in Colorado - 57 contributions

Darryl, It would definitely be in your best interest to have a conversation with a local licensed Colorado loan officer to go over your options. We are ranked as the #1 mortgage loan company on this site here in Colorado and I would be more than happy to offer you a free consultation to see which refinance options would be in your best interest. Feel me to 970-590-5021 or email me at nnetherton@nc-mc.com

Nov 11th 2011
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

it's a great way to go if you can afford the higher payment.. you will build equity much quicker on a 15 year vs. 30, and you will save 13 years of $1400 per month... WilliamAcres.com

Nov 11th 2011
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