Fastest way to pay off remaining mortgage balance?

[Anonymous]

I hoping someone can help regarding the fastest way to pay off my mortgage. Stats are:

Original loan balance: 163,000 in 2016

Current balance: 58,000

Term: 15 year

APR: 3.5%

Monthly payment w/ impounds: $1,580 (taxes, flood ins and homeowners incl.)

I can see the light at the end of the tunnel and I'm looking for the fastest way to pay it off. The flood ins. is ridiculous as there is an error in the flood map survey, so would love to save the $1600/yr.  I can afford to pay an extra $300/mo towards the principal currently. I'm not sure how all the math works with interest front loaded into the first years, but would I be better off refinancing to another 10 or 15 yr loan and then make $1,900/mo payments to pay it off faster? Or should I just keep paying as much extra towards pricipal as possible? Thanks!

[me12345]

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@Anonymous wrote:

I hoping someone can help regarding the fastest way to pay off my mortgage. Stats are:

Original loan balance: 163,000 in 2016

Current balance: 58,000

Term: 15 year

APR: 3.5%

Monthly payment w/ impounds: $1,580 (taxes, flood ins and homeowners incl.)

I can see the light at the end of the tunnel and I'm looking for the fastest way to pay it off. The flood ins. is ridiculous as there is an error in the flood map survey, so would love to save the $1600/yr.  I can afford to pay an extra $300/mo towards the principal currently. I'm not sure how all the math works with interest front loaded into the first years, but would I be better off refinancing to another 10 or 15 yr loan and then make $1,900/mo payments o pay it off faster? Or should I just keep paying as much extra towards pricipal as possible? Thanks!

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No, do not refinance it, the higher rate, and the fees would be counter productive to your goals....Just keep paying as much extra principal payments as you can.

Thanks,

[Anonymous]

Agreed. 

Absolutely do not refi.

with that much principal already paid down, you are prob already 10 years deep in the 

ammorization (just guessing) in 2 years?  you are doing excellent.

Pay whatever extra you can, but continue to add towards savings too.

Maybe when savings hit a new high, you can even send extra to mortgage,

but dont take savings lower than you are comfortable with.

Good luck!

[Anonymous]

Great! Thank you for the responses, I was hoping for a no-refi answer!

[dynamicvb]

If you search for mortgage payoff calculator you will find ones that will take your current balance and interest etc and let you do what if’s to figure what you need to do in order to payoff in certain timeframes.

[pipeguy]

It should be noted that interest is calculated (daily, charged and shown monthly) on the unpaid principle so anything you pay extra directed at principle reduces the next full payment going towards interest. With a 3.5% conventional loan, I would NOT refinance because not only will you pay closing and possibly points, but you won't get a better rate.

I just refinanced from a 5.875 rate to a 3.5 5/5/ARM but I won't be in this house 5 more years (it will adjust to 5.5 in 5 years which is still lower than what I was paying).