This is a follow-up for my question for 30 years refi w/ 22 years left on the loan.
?? The current loan balance on this property is $189,000 with a monthly payment of $1313.04 P & I.? I am in my mid 50's.? My goal is to pay off my mortgage since I want to stay in this house for the rest of my life.? I also want to save more money in my retirement account.? If I go with the 30 year loan at 3.625 % at $189,000 my monthly payment will be $866 something.? A $466 savings per month.?from what I am paying now.? If I go with a 20 year at 3.50% my?monthly mortgage payment will be?at $1,101+ w/c gives me a $241 savings per month.? I talked to a mortgage broker and discussed with him if I can put an extra $20,000 dollars on the?total loan balance to make it down to $169,000 but?he told me?that it?was not a good idea to put more money on my house.? Instead he told me to invest that $20,000 to any investment wherein it will earn a 3-5% a year, and said to go with the 30 year loan.?? The money that I saved for getting the 30 year loan the mortgage broker advised me to?invest it.? He said that 20 years from now if you invest your money wisely at 5-10% rate , you can pay off your mortgage. ?I am so hesitant to follow his advice since I do not have anybroad knowledge in investing. ?Although the family budget is tight, I? have? money in?my 401K? about $112K saved when I was still working. That money did not grow so well for almost 10 years until now.?? So I am thinking that if I go for a 20 year loan by the time?I retire?I have?10 years left to pay?my mortgage, I am thinking that I can draw some money out of?my retirement account to add to pay for living expenses in additon with my social security benefits. But I am thinking too, that this may not be enough to sustain my daily living expenses and mortgage payment.
I?have given so many thoughts about?what the broker told me to refi for a 30 year instead of? 20 years.???I do not want to make a big mistakes in making decison of which of the terms should I choose. I know realistically that there will be no more changes in my financial situation since I cannot g work because of my disability. I asked different opinions from relatives and they have different thoughts. Some suggested to get the 20 year loan and get a room mate to cover some of my household expenses. Some say to get the 30 years and forget the 8 years that I already paid for the house. I am now in great confusion. I really ?need to get this refi loan? started but still in doubt w/c is really the best choice for me.? Any additional thoughts or suggestions that you can share. ? If you are in the same situation?like ?me.? Thanks.
Source: http://www.zillow.com/advice-thread/30-years-refinancing-w-22-years-left-on-original-loan/460907/
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