Yes another refi question

[Deleted]

So I found out yesterday from our original mortgage broker that we can do a streamline refi and now I am not sure which is the best option.

Do a 3% 15 yr mortgage and increase our monthly payment by about $78.

Do a 3% 30 yr mortgage and decreaseour monthly payment by about $180.

We have been in the home 3 yrs. It can be our forever home if we want but we are more likely to move to a better floor plan in our neighborhood once we have more money to do so. We are thinking about 5-7 yrs out.

I was thinking that since this is not our forever home and we do have debt it is better to put the $180 to pay off debt and save to new cars rather than pay down a mortgage on house we know will will be in 10 more yrs MAX.

Agreed?

[my4girls]

Is there a typo or are the rates really the same 3%? If so then yeah there isn't a point to go with the 15 year. Usually the incentive is a lower rate

[Deleted]

Sept 27, 2012 8:34:07 GMT -5 my4girls said:

Is there a typo or are the rates really the same 3%? If so then yeah there isn't a point to go with the 15 year. Usually the incentive is a lower rate

Yep the rates are the same

[boiler717]

I'd do the 30 year since the rate is the same. Gives you more flexibility and you can always pay extra.

[my4girls]

then yes do the 30year, you can always pay more to lower the length if you want to but you will have more flexibility with the 30 over the 15

also- where are you getting the 3% from? We're in the process of buying and yesterday I was given 3.25, which I was thrilled with, now I want the 3 lol

[CallingAllAngels]

I agree with you, especially since you have debt. We opted for the 30-year since we have more pressing financial goals than paying our house off, but we are in our forever home (or at least our "next 20 years home").

[Deleted]

Sept 27, 2012 8:50:51 GMT -5 my4girls said:

then yes do the 30year, you can always pay more to lower the length if you want to but you will have more flexibility with the 30 over the 15

also- where are you getting the 3% from? We're in the process of buying and yesterday I was given 3.25, which I was thrilled with, now I want the 3 lol

No idea. They guy is a mortgage broker. I plan to call him back today so I will find out an PM you.

[my4girls]

thanks!

[LoveTrains]

Damn, 3%? That is fan-fucking-tastic. Good for you!

[M]

I would do the 30 year but pay your current payment or even the 15 year payment to put more towards principal and less towards interest. Just make sure there's no prepayment penalty and that it all goes towards the principal.

[aurora]

Yeah - if they are the same rate then there is zero incentive to go with the 15-year. You could even do the 30 and pay the same amount you're currently paying so that you pay it off in some intermediate time frame (20 or so years).

We refi'd to a 15-year but only because the rate was lower.

[cindilu1]

We did a 15 year to get the house paid off faster.

[lys]

With the 15 year you pay less interest over all IF you were planning to stay in the house long term.
Since you have debt and do not plan to stay , then the 30 year mortgage and using the 180 savings to pay off consumer debt (and add to savings) would be better.