Refi advice please… - Posted by Sheik
Posted by Sheik on October 22, 1998 at 15:31:47:
I think I know what’s the right thing to do but
I am looking for some reasurance.
I have the opportunity to refi my home and I am
wondering whether I should go ahead or not. Here’s
Market value - $130K; Want to keep my monthly approx $600.
N(remaining)= 247 I=8.625 PV(remaining) = 70K PMT=606.68
I am offered either a new 15yr @ 6.875 or a new 30yr @ 7.25.
N=180 I=6.875 PV(including closing cost)=74K PMT=659.97
In my opinion, its not worth doing the a refi for 15yr.
If I wanted a shorter term, I can simply add the difference
in payment to my current mortgage resulting in -
N(calculated)=200 I=8.625 PV=70K PMT=606.68+53.29=659.97
Refinancing would save me about 20 months of payment
(30 YR ANALYSIS)
Refi for 30yr without pulling out more cash.
N=360 I=7.25 PV(w/closing costs)=74K PMT(Calculated)=504.81
This results in a saving of about $100/mo (which I WILL
direct to my RE investing)
Going further: Refi for 30yr AND pull 10K cash for more
N=360 i=7.25 PV(w/closing costs)=84K PMT(calculated)=573.03
This last scenario results in $10K cold cash AND a monthly
savings of about $33 from my current payment.
So tell me what you think.
Shoud I do 1) 15yrs or 2) 30yrs w/ no cash or
3) 30yrs w/ cash or 4) nothing!
Thank you for going through this cumbersome analysis.
Your inputs are all welcome.