I am down to 10 years in my 15 year mortgage with 2.75% interest rate. Wondering if it is worth refinancing with 10 year option if possible to reduce interest rate. Any suggestions on good mortgage refinance options.
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Is recasting the mortgage an option?
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This can be answered nearly 100% objectively by getting quotes and doing the math. The only subjective part that is hard to factor in is how much you value your time and effort required to go through the process.
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That doesn’t make any sense – if he has 10 years left, recasting to 10 years is equivalent to not recasting at all. Also, unlike refinancing, I’m pretty sure recasting doesn’t change the interest rate, only the monthly payment.
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Balance?
Probably not though.
It depends on the balance, what rate you could get for a 10-yr fixed mortgage (rates have been going up lately), the closing fees for such a mortgage, and how long you expect to be in the house. If you’re going to move in 5 years say, this is the deadline for you to break even, not the 10-yr term.
So just explore what rates you can actually get now. Find the monthly difference in payments, and see how many months it’ll take to recoup the refi closing costs. If you’re sure you won’t move before that many months, go for it.
I would suggest reading the refinance mega thread at bogleheads. I can personally recommend better.com and their better with Amex promo for additional closing credits.
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