I'm 49 years old, currently have a VA 30yr @ 3.75% mortgage with 26years left. (We moved across the country for a new job in 2017). Remaining balance 254K, No PMI, have approximately 100K in equity.
Looking at VA IRRRL refinancing, best mortgage broker I've found so far has both 15 and 30 year mortgages at 2.25% with costing cost of about $3,220 ($1,284 of which is the VA funding Fee (0.5%)). The difference is that for the 15yr, there's a $3,541 credit towards closing...meaning I'd end up getting about $220 at closing for the 15yr.
Difference in payment ..
- Cur $1269 - 15yr $1672 - 30yr $986
Was leaning toward the 15yr, since it'd be since to have the house paid off when I'm 65 rather than 80. But it seems like I should be able to find a better use for that $700/mo.
Wife and 2 kids (14 & 13). Collage and driving are on the horizon for the 13yr old, but likely not the 14yr old.
The wife and I both contribute to 401k past company match (think I'm at 11% or so).
Emergency funds, probably not as much as they should be about 10K currently.
And we have a couple credit cards, both under 10%, but with about 30K total on them.
I had looked at refinancing with cash out option...maybe I need to look some more at that. But the VA IRRRL was so much quicker and lower cost from what I initially was seeing.
EDIT So I'm back reconsidering my options....instead of the quick & easy VA IRRRL, I'm considering a refi with 30K cash out to use to pay off the credit card debt (which is at 10%).
I really like the idea of dropping from 3.75% to 2.25%, so those are what I was looking at.
P&I VA 30 yr - 1125 VA 20 yr - 1524 VA 15 yr - 1927
Those number are likely a bit high as the mortgage website was calculating a 3.6% VA Funding fee and I think it should only be 2.3% as this is my first refi.
I couldn't get a standard 30yr at 2.25 currently. Only 15. Really not fond of the idea of a 30yr. (especially if I've rolled up credit card debt into it)
So two questions..
- Good idea to get the cash to pay of the CC?
- what do you think of a 20yr mortgage?