Saturday, September 26, 2009

Refinance To 15 Year Mortgage?

I got a letter from my mortgage bank, Chase, today. It said as a responsible homeowner and valued customer, I meet the preliminary criteria to refinance my mortgage to a 15 year fixed rate mortgage at 5.11%. Also, they are waiving the origination fee, appraisal fee, and credit report fees.

Hotdog! How can I refuse? Well, for one thing I don't really qualify for that rate because my house is a rental, not owner-occupied. I don't know what the rate would be but my current rate is 5.8% and I doubt it would be lower than that. Also, if I didn't make any extra payments on my mortgage as it is now, I would have it paid off in less than 7 years. I suppose if I wanted to free up more cash I could refinance to a 15 year mortgage and lower my payments. There are other fees that I would have to pay too. I'm guessing that there are at least $1,000 in fees. Those could probably be added to the loan so that I wouldn't have to pay them up front.

It was nice of Chase make the offer but I think I will stick with my own plan, that is, to pay extra so that I have it paid off in less than one and a half years. The thought of dragging my mortgage on another 15 years makes me cringe.


Over the Cubicle Wall said...

Looks like they need help in the marker research department. I guess they didn't notice your accelerated payoff schedule.

Daizy said...

Ya, I'm stuffing all of that extra money in there to what? pay them extra fees to refinance and keep the loan longer? Not if I can help it!