With a loan term of 15 years, your monthly payment would be roughly $1,072 for a refinance of $150,000. That includes principal and interest.
With a $155,000 refinance, on the other hand, your monthly payment for the same loan term will be about $1,108. This means the difference you will pay each month will be $36. However, you will also pay an extra $1,434 in interest for a $155,000 refinance compared to a $150,000 refinance, due to the higher balance.
However, the increase here is not as dramatic as taking a higher interest rate on the same amount, which we will look at now.
Increased mortgage rates
If your mortgage lender offers you a no-closing-cost refinance without adding funds onto your principal, you will have to accept a higher interest rate.
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