^ Refi to 15 year loan if moving in 5 years?

[justkly]

We purchased our home in 2006 at 6.25%. We are going to refinance this month with a 3.25% rate. It we chose a 15 year loan our monthly payment would go up $50 per month. If we stay with a 30 year (both are fixed), our payment would drop $350 a month. DH isn't sure which would be best since we will be moving in about 4 years and do not know if we would keep this house or sell it. I want to do the 15 year loan, but are there any drawbacks to choosing the 15 year loan if you might sell sooner rather than later? Or anything else I should know? thanks

[atouchofklasse]

Are both loans at the same rate?

[justkly]

May 20, 2012 22:23:53 GMT -5 atouchofklasse said:

Are both loans at the same rate?

Good question. I don't know tbh, because DH is dealing with all of this directly. It's a VA loan, so I don't believe the rate would be hugely different.

[WOT?*]

If the interest rates are similar, refi at 30 and pay like it's 15. That way you can have it paid off if you stay, principal exponentially lower if you sell in the very near future and have a cushion of $350/mo if something happens.