Refinancing - numbers making my head spin!
I just canÃ¯Â¿Â½t get my head around how to figure the actual savings of 15 yr @ 3.75% vs continuing my current mortgage.
Right now IÃ¯Â¿Â½m paying a total of $760 for P&I for a 1st at 5.5% & 2nd at 4.5%, with a total of $84,000 remaining to be pd over the next 13 yrs. If I refinance at the 15 yr rate, I pay $610 for P&I, a savings of $150 a month. When I look at the amortization tables though, because I have paid down somewhat on my current 2 loans, it doesnÃ¯Â¿Â½t look like I save all that much in interest with the new loan, and in fact the first few years IÃ¯Â¿Â½ll pay a little more, bout $430. And then when I consider how much equity IÃ¯Â¿Â½ll have in the house in 5-10 yrs time (when I sell) that further adds to my confusion.
I guess I really should talk to a financial consultant but Ã¯Â¿Â½. In the meantime, could yÃ¯Â¿Â½all help me to understand exactly how to figure what exactly my savings are? Am I just looking at the monthly payment savings, or equity accumulation - probably some combination of both??
Another option is to do 30 yrs and I have read in this forum that that makes some sense when you need more liquidity in your assets (which I do). W/15 yr loan Ã¯Â¿Â½ I could put an extra $1800 per year in savings vs. $4080 per year with the 30 yr loan. Or to be honest I could be more disciplined and save the same amt. $4080 per year and still have the benefits of the 15 yr loan. EEEK - my brain hurts!