Should i refinance my house from a 10 year to a 30 year mortgage?

Ginette
I have 7 years left. I have 4 kids and a wife. I didn't want to be stuck with a higher payment just in case of my job. I only have 98, 000 left on it so when I re-fi, my payment would drop to 700(includes state tax), instead if currently 1600.I would still pay off early...

Antonette
Signman is right. You will pay more in interest on the 30 year than the house is worth. Right now you are building equity, such as it is.. . I wouldn't go to a 30 year at this point. Maybe a fifteen...

Arron
I would only do it if you absolutely need to. Have you checked into it seriously yet? If not, that would be my first step to see what kind of interest you are looking at (many advertise low interest until you look into it more then you realize it isn't as low as you thought) as well as what kind of closing costs. I would think 30 years worth of interest (even at a 5.5 or 6% interest) would be enough to scare you away comparing what your interest is for a 10 year mortgage.

Bao
IF you refinance to 30 years, you just added probably $150, 000 to the interest...do the math...360 months @ $700=$250, 000!!!If you are refinancing $98, 000-that means you are paying $152, 000 for interest and taxes...at 10 years and $1600 per month, that's $192, 000- subtract your $98, 000, and your taxes and interest is only $100, 000.We set up our house/shop building for what we thought was a 15 yr mortgage and found out too late the banker changed it to 30 year 'to save us monthly money'...but we made split double payments each month direct withdrawal (saved a couple percent points) and also $100 per payment additional on the principal. Then any 'escrow' refunds at the end of the year went on the principal. We paid it OFF last May-only 10 1/2 years into it! And saved around $80, 000 in interest!If you really have to refinance, go for 15 years, the payment will be a little less than what you have now, but if you throw in an extra $100 or more, or even keep paying $1600 while you can-you will pay it off ahead of time. Time=interest=money out of your pocket. Why pay for your house twice?

Camilla
You should do what is comfortable for you. Make sure how much they are going to charge you to re-fi your home. They will say no out of pocket cost. But they will roll the cost into your loan. So be careful what you are being charged to get this loan. The first years you will be paying more interest then principal. But if you are worried about your job then the payments are a big issue to you. Will you be able to make the payments if you lose your job if you re-fi? Make sure that you will be able to make these payments or you will still lose your home and it has cost you to get the lower payments.

Lyla
Such a question is pretty meaningless unless we know your current rate and the rate you are guaranteed to get in a re-fi.If you are looking at substantially lower loan rate why don't you re-fi for a 10 year term? At 5.75% you'd pay under 1200 and still svae 400. At the same rate for a 30 year loan you'd pay the 700.

Bettyann
Sounds like a good plan. if the interest rate is good and closing costs are reasonable, then I say go for it, but still make the $1600/month payments. but for months when you need a little financial help, you can do your "minimum" $700/month payment.

Keren
It is really up to you and your wife. If yall do decide that you all are going to refinance than it would still be wise to try to pay extra because its a lot better to only have 7 years left rather than 30 years.

Billie
If you don't plan on moving and can still get a low rate, that would make sense to me. Just don't get stuck paying a lot of fees to refi.

Elke
if you can afford your current payments, it makes no sense to refi - I can only dream of the day I might have no mortgage - probably not until I retire - if I'm lucky