Daily Archives: August 3, 2010

MORTGAGE RATES ~ 20 Year vs. 30 Year.

MORTGAGE RATES ~ 20 Year vs. 30 Year.

Time to Refinance???  A case study.

Refinancing with a 20 year mortgage does make sense.  When refinancing you want to take a look at monthly payments, percentage rates, term of loan and then at total cost of loan and total interest payments of loan.  If you take a look at the example down below you can see that with lowing your interest rate by 1% and the length of time (term of your loan) of the loan, you can save thousands of dollars. Check with your local Mortgage Broker, Mortgage Banker and Lending Institutions for terms, conditions and rates of current mortgage loans. 20 year mortgages tend to be a 1/8th of a point lower than a 30 year mortgage, check with your local banker.

The case study below is just an example and includes principal & interest payments (P&I), taxes and insurance payments are not accounted for. The example below is based on refinancing after having the original mortgage for six years. Whenever considering a refinance you should consult your personal Certified Financial Planner (CFP) and Certified Public Accountant (CPA) for your individual needs and situation.


** The Principal & Interest Total and the Interest Total is if you keep the full life of the mortgage from start to end. 

*** If you keep the original 30 year mortgage at 5.5%, over the next 24 years your Total Principal & Interest payments will be approximately $654,094.

Your local Realtor can usually recommend a few mortgage brokers in your area. William Raveis Real Estate is a full mortgage in-house mortgage broker, look on http://davidpopoff.raveis.com/davidpopoff/?SITE=agt  for mortgage rates, tips and tools:-

  • rent vs. buy
  • mortgage calculator
  • rate watch
  • home evaluation
  • applications on line.

To help with refinancing here is a great link to an article on AOL ~ Real Estate on “Closing Costs No Surprise”


David Popoff is a license Realtor in Connecticut with William Raveis and is also a LEED GA accredited and member of USGBC & CTGBC. For all your real estate needs in Darien, New Canaan, Rowayton and other parts of Connecticut please contact him at http://www.davidpopoffct.com/

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~ David A. Popoff ~ Licensed Connecticut Realtor ~ LEED GA accredited ~

~ Cell (203) 228-0646 ~

 ~ www.DavidPopoffCT.com ~ DavidPopoffCt@Hotmail.com ~

~ https://davidpopoffct.wordpress.com/ ~

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