Mortgage refinance payoff may be small
Dear Dr. Don,
We currently have 7½ years and $76,000 left on a 15-year mortgage. Our rate is great — 4.75 percent fixed. Could I do a seven-year adjustable-rate mortgage refinance at 3.2 percent to pay off the remainder of our loan?
– John Juncture
Dear John,
You’re halfway home to paying off an existing mortgage with a mortgage rate below 5 percent. The decision to refinance will come down to how expensive the closing costs are on the new mortgage and whether you can take full advantage of the mortgage interest deduction on your taxes.
I put together the table below using your numbers and Bankrate’s mortgage calculator.
Go here to read the rest:
