Is it worth it?
- Thread starter DoWhat
- Start date
PeoplesElbow
Well-Known Member
Dakota
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You currently pay @$1700 a month in P&I. At the end of your loan, you will pay $216,669.40 in interest (from now until the end).
If you go with the 15 year note, you will have a payment increase of @$325 per month and only pay $68,747.27 in interest.
You have to decide if you can swing another $325.00 a month in a mortgage payment.
I ended up going with a 20 year mortgage at 3.25% when considering the same options and our house payment is about 62 percent of what yours is... once you average in tax and everything else... that seems like a huge payment.
If you go with the 15 year note, you will have a payment increase of @$325 per month and only pay $68,747.27 in interest.
You have to decide if you can swing another $325.00 a month in a mortgage payment.
I ended up going with a 20 year mortgage at 3.25% when considering the same options and our house payment is about 62 percent of what yours is... once you average in tax and everything else... that seems like a huge payment.
Dakota
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that is where I got the numbers I posted.
Great info.
Keep it coming.
What about the current 6 yrs paid in P&I effecting the comparison? (Make sense?)
Using the calculator you start at 24 yrs.
Dakota
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I started at 25 when I did it... even running it with 24 years left, your payment is currently somewhere in the mid $1700 range (P&I) with total loan interest left to pay on at $206,716.97.
PeoplesElbow
Well-Known Member
You already paid that, you really cant take into account what you already paid since you can't unpay it.
I don't think I am explaining it right.
But I understand what you said.
I am looking at my amortization break down.
I am currently paying more to my principle (after 6 yrs.) now compared to the start of the loan.
I want to look at that break down with the new 15 yr.
Would I be better off doubling up on my current loan at 4.875 or getting a 15 yr. at 2.875 (and paying closing and points)?
Make sense?
PeoplesElbow
Well-Known Member
Yes, the one thing the numbers can't show you is the flexibility that simply keeping the 30 year mortgage and paying extra whenever and however you want gives you.
What you want to do is figure the interest you will pay on each loan from this point forward and add closing costs/points to the new loan. You can get more complicated also if you want to say that extra money would be in an interest bearing account instead. To keep this part of the calculation simple it is pretty easy and accurate enough to subtract this rate from your 30 year loan rate. For example if you could get 1% on that money you would take your current mortgage rate and subtract 1% before you did your calculations.
Chasey_Lane
Salt Life
Not bad. Staying with your current lender?
Yes.