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Two Refi Strategies
A couple has a $200,000, 30-year mortgage taken out 10 years
ago at 10.43%. The monthly payments are $1,819, and the total interest
due over the loan's term is $454,847. The couple has already paid $201,341
in interest, and $16,941 in principal. Here are two scenarios for
refinancing the balance:
30-YEAR LOAN 15-YEAR LOAN
MORTGAGE AMOUNT $183,059 $183,059
INTEREST RATE 6.92% 6.59%
MONTHLY PAYMENT $1,208 $1,604
INTEREST ON NEW LOAN $251,848 $105,609
TOTAL INTEREST* $453,189 $306,950
*Including interest already paid on old loan
DATA: HSH ASSOCIATES
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Updated Oct. 22, 1998 by bwwebmaster
Copyright 1998, by The McGraw-Hill Companies Inc. All rights reserved.
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