Should I refinance?
For some reason I just can't wrap my head around this. I currently have a 30 year, fixed rate loan at 5.25. I owe 73,000 on it. It is appraised at 109,000. My monthly payment is $520 and I always pay $180 extra each month toward principal. I am in my mid-50s so feel like I would like to get this paid down. However, it has been nice to have a little wiggle room, so that if something came up I would only have to pay the $520 amount (although that has not yet occurred). I am currently facing the need to replace roof/gutters and have a portion of my driveway and sidewalk done. I have about $5,000 in an emergency fund which I can use toward this, but will fall a couple thousand short. I have a car loan of about $7,000 that I am also paying on. No other debt.
I could remortgage with a cash out at 4.87%, which reduces my payment to $450/month on a 30 year fixed; or take a cash out @ 4.76, which would reduce my payment to $550/month on a 20 year loan; or take a cash out at $4.37 and increase my monthly payment to $644/month. Closing costs are $1800. I have excellent credit history.
Is this worth it? Or do I look for some other way to come up with the amount of money I'm short for these home maintenance issues?