Mortgage refinance advance

[frannn]

You have all been so wonderfully helpful with recent questions, so I hope some of you could help with my refi decision. I am currently paying 6.125% on a 25 year mortgage that has 17 years remaining. My two options are
1) refi with a 15 year loan at 4.25%, saving 30/month, or 2) refi with a 20 year loan at 4.75%, saving 230/month. My job has been a bit shaky, but I have been told by reputable sources that I will most likely keep the position....of course there's always that small % I will be let go. I do have some savings, but also credit card debt of about 15K (due to recent major vet bills, etc). I am leaning towards taking the 20 year loan and either using the 230/month savings to pay down the mortgage quicker or the credit card debt. On top of this, we are expecting a tax refund that we will pay off a bit of debt with, pay off our WDW trip (not too bad), and bank the rest. I don't want to take out an even bigger mortage to pay off the credit cards- would rather live a lttle leaner & use that. Any thoughts?

 

[jessicaerv]

One thing you haven't discussed - do you plan on staying in the home for the entire term of the loan? How much in fees does each Option entail?

However, sounds like your best bet with the info you've given is to refi for the 20 year term. Take the extra $230 a month you're saving and put it towards your CC debt. Once that is paid off then you can either put the $230 towards savings or towards paying extra on your mortgage.

Good luck!

 

[frannn]

I have to go thru a whole new closing, except for NYS taxes, since it would be a refi thru the same lender. The rep said I would pay the title co charges of 3k, and that would be rolled into the loan. I would need a new appraisal as well. Rep said I would recoup the cost in about 1 year, and we plan on staying here for at least 2 more years, probably more.