SOLUTION: Okay I bought a house 5 years ago for $171,00 with a down payment of $30,000. Which means I took out a loan for $141,000.00. MY interest rate was 5.75% fixed. I would like to pay m

Question 772810: Okay I bought a house 5 years ago for $171,00 with a down payment of $30,000. Which means I took out a loan for $141,000.00. MY interest rate was 5.75% fixed. I would like to pay more on my loan. I check my Bank statement and find out the following information: Escrow payment is $261.13, Principle and Interest payment is $822.84, Total payment is $1,083.97, With a currant loan Balance of $130,794.68.
With my currant loan, How much additional money would I need to add to my monthly payment to pay off my loan in 20 years instead of 25 years? and would it be reasonable to do so if I currently meet my monthly expenses with less than $100 left over. Also what is the highest interest rate I could refianance at in order to pay off my currant balance in 20 years. I need to determine a interest rate that requires a monthly total payment that is less than my currant total payment.
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
You are paying way too much interest. With decent credit, you should be able to
refinance at an interest rate of 4% or less. The escrow payment does not figure
in this
A quick calculation: To pay off $131,000 in 20 yrs (240 months) at 4%, the
monthly payment is: $794 (plus your escrow), less than you are paying now.
:
Go to a bank or a credit union find out what kind of interest rate they will offer
You can shop around for this but stay away from those loan sharks on TV that offer
wonderful interest rates. They add hidden fees to the loan, they are real good
at screwing you.
Good luck
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