Refinancing Home!

[MahiMike]

without doing the math, I'm guessing your pmts will go up. Why would you want that? You can make extra pmts to shorten the time frame. 1 extra pmt per year on a 30 yr note brings it down to 22 yrs. Also, you could pay semi-monthly (2 pmts per mo) and cut it another 5 yrs or so. You never know if you'll need that extra $ and anything less than 8% long term is better used investing in other places.

[Chief Pote]

Originally Posted by MahiMike

without doing the math, I'm guessing your pmts will go up. Why would you want that? You can make extra pmts to shorten the time frame. 1 extra pmt per year on a 30 yr note brings it down to 22 yrs. Also, you could pay semi-monthly (2 pmts per mo) and cut it another 5 yrs or so. You never know if you'll need that extra $ and anything less than 8% long term is better used investing in other places.

I'd sure like to see your numbers...but you're incorrect. Compare the interest paid over the life of both loans. You can not make up that difference in investments with that little bit of money. What about his age at 20 years or 25 years and does it lengthen his retirement age?