30 Year Mortgage To A 15 Year

[2014FusionM]

I have been thinking recently about refinancing my house loan from a 30 year to a 15 year mortgage. Some of you might recall that my wife sales new homes and well the DFW market has been booming, and that has been good for the pocket book.

We have been putting back money and we both have the cars that we want, live in a house we really like, along with a good school district. We make extra payments now on the house which would probably add up to what a 15 year mortgage would be but we also like the flexibility of if times were to get tight we still have a low payment.

that being said would it really be worth moving to a 15 year mortgage? we already have a 3.25% interest rate on our 30yr and are only about a year into it. could anyone give me the numbers along with a round about cost for all the fees to close on a 15yr?

[grizzman]

I did it in 2005. Reduced mortgage rate and the payments stayed about the same. I had 23 years left of the 30 year mortgage so I cut 8 years off. Will have it paid off in 2020 and I don't regret the decision. I can't remember what the closing costs were.

[thegrouse]

My credit union let me go from a 30 to a 15 for $1000. They called it a modification not a refinance so the paperwork was very easy. I went from around a 4% to a 2.875.

[lnester]

Just pay extra principal each month to make it a 15 year mortgage. That way you avoid the fees of re-financing.

Then, if things get tight, your minimum payment is only a 30-year mortgage payment. The best of both worlds.

[Codie]

My credit union let me go from a 30 to a 15 for $1000. They called it a modification not a refinance so the paperwork was very easy. I went from around a 4% to a 2.875.

this - check and see if you have the ability to do a modification instead of a re-finance. Outside of that it depends on what type of costs you are going to be charged to do the transaction as to whether it is smarter to keep your non interest expense money (fees cost) in your pocket and just put extra towards each payment or go ahead and re-finance or modify.

[gofish24]

cutting years always saves you money, but I believe 15 year rates today are around 3%. the 3.25% 30 year you have is a good 30 year rate.

if your mortgage was $100k on a 30 year and you still had 30 years left and you went down from 3.25 to 3% on a 15 year you save around $5k total.

[bgbean90]

Just pay extra principal each month to make it a 15 year mortgage. That way you avoid the fees of re-financing.

Then, if things get tight, your minimum payment is only a 30-year mortgage payment. The best of both worlds.

Agreed! Best advice I received when going through the mortgage process!

[32drawlength]

Just pay extra principal each month to make it a 15 year mortgage. That way you avoid the fees of re-financing.

Then, if things get tight, your minimum payment is only a 30-year mortgage payment. The best of both worlds.

This...

[Texastaxi]

cutting years always saves you money, but I believe 15 year rates today are around 3%. the 3.25% 30 year you have is a good 30 year rate.

if your mortgage was $100k on a 30 year and you still had 30 years left and you went down from 3.25 to 3% on a 15 year you save around $5k total.

You need to brush up on your amortization skills.
$100,000 at 3.25% for 30 years ... total P&I payments = $156,674
$100,000 at 3.00% for 15 years ... total P&I payments = $124,304

[justintyme8303]

Just pay extra principal each month to make it a 15 year mortgage. That way you avoid the fees of re-financing.

Then, if things get tight, your minimum payment is only a 30-year mortgage payment. The best of both worlds.

x2

[TigerBob]

Another thought - because your rate is already really low - take that extra money you would put towards your mortgage and invest it. As long as your disciplined and continue to invest, you can build your savings and have the liquid funds available should you ever need them. This way you aren't forced to pay a higher monthly mortgage payment should hard times hit or be forced into another cash out refi in the future should you need access to these funds for any reason.

[gingib]

some of yall got it going on and are smart...others not so much lol

[HoustonHunter94]

Just pay extra principal each month to make it a 15 year mortgage. That way you avoid the fees of re-financing.

Then, if things get tight, your minimum payment is only a 30-year mortgage payment. The best of both worlds.

This is what I do.

[gofish24]

You need to brush up on your amortization skills.
$100,000 at 3.25% for 30 years ... total P&I payments = $156,674
$100,000 at 3.00% for 15 years ... total P&I payments = $124,304

your right that was just the rate change. didn't change the number of years

[jbarr]

We went from a 30 to a 15 year mortgage a few years ago and my wife told that we should have house paid off in 2 more years. We have been in our house for 13 years total, my wife is pretty awesome when it comes to our financial situation, even though sometimes I want to go do things and she says we are broke, there is always a method to her madness.