Here’s How Refinancing Can Be a Great Idea!

I am doing a refinance for a family right now and here is their situation. They bought their home 9.5 years ago. They have paid 112 months of payments at $751 a month. So far, $11,202 has gone to principal and $72,910 has gone to the lender, in interest. They still owe 248 payments. The total of those payments is $186,248. This is how much they will pay if they stay in their current mortgage and make no additional payments.

So, I looked at their current amortization schedule and compared it with their proposed schedule, and here’s the new plan: We have converted them to a 15 year mortgage. Their new payment will be $735, which is only slightly less, but instead of making 248 more payments, they will only make 180 more payments. This refinance will save them $54,066. And they will skip their December payment – Merry Christmas Smith family!!

I don’t know about you, but $54,066 is a lot of money to me!
If you are curious to know if refinancing your home is a good idea, please give me a call and we’ll look at your situation!

Thanks for taking the time to read my blog!!
~Leslie


865.789.6229
Lsweet02@comcast.net