Mortgage Loan Q & A
Better to refinance with a 15, 20 or 30 year fixed?
Our home is currently mortgaged at 6.25% so with rates being so low, we want to refinance. We think we will be in our home for another 5 years at least and at that point we will either do some renovations/additions or move into a larger home. We can get a 15 year fixed rate mortgage for the same monthly mortgage we are currently paying. OR we can do another 20 or 30 year refinance, have our monthly mortgage drop a lot lower, and then use that money for improvements to the property to make it either easier to sell in 5 years or happier for us to live here in 5 years.
If we knew we were going to be here in 15 years, I would definitely do the 15 year mortgage, but since we’re not sure, is it better for us to do a 30 year and use the money to upgrade? Any thoughts?
well, you’ll have more equity in your home if you do the 15 years and therefore, make a greater profit if you sell in 5 years. one thing to consider is if you do the longer mortgage will you actually save the money and put it toward the home or will you spend it on other things. personally, if i could afford it i’d do the 15 years.
Greg’s Market & News Report Week of 4-5
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