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Registered
Join Date: Jul 2001
Location: Cave Creek, AZ USA
Posts: 44,726
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Stratgery for paying off mortgage early.
I used to work in this biz, but I just don't know how to compute this one.
We are 5.5 years into our current 30 yr. fixed mortgage, but have always paid an extra $500/mo. toward principal. So the balance is dropping fast. Our current rate is 4.25% and, while I've always planned to have this knocked out in 15 years, I'm now thinking of refinancing into a 7/1 ARM and knocking it out before the first adjustment. That rate would be 2.65%.
If current P&I is $1508 and new P&I with 7/1 ARM is $959, but we continue to make our current payment, which would then be $900 extra per month, how to compute how fast we'd have it paid off?
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