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Teachingsciatcms

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Refinance mortgage or not!
In a Subprime adjustable rate mortgage. 65000 balance $70000 equity. W/ 15 years left, and 8.875 interest. Current finances allow me to pay an extra $1000 per month. Is there a 5 year mortgage available? Calculation shows payment would be about $1200 compared to the $905 I'm currently paying, plus the extra $1000 I'm 1 year post Ch 13. I'm a 55 yrs old teacher with 5 years left till retirement. Currently $10000 in bank adding $2000 to savings per month

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Your credit rating will determine what type of loan and the interest rate you qualify for; along with debt to income ratio.  I've heard of 15 year mortgage loans, but that's not to say shorter term loans aren't available. Different states have different rules and laws. 

Now if you file long form on your taxes, you can deduct mortgage interest. So even if your interest rate is 8%+ or whether you pay 4%; it's relative because it's deductible. If your credit score doesn't allow you to refinance, keep  in mind there will probably be up to $5000 in loan fees on a refinance. You'll need to do the math, but it might behoove you to pay extra principal payments to pay your loan down and off early. Also make sure there are no pre-payment penalty fees for paying the loan off early.

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