My mortgage is $200,000 at 5.375 interest only. should i refi for 30 years 6.375?

Question

my mortgage is $200,000 at 5.375 interest only. should i refi for 30 years 6.375?

Answer 1

200,000 @^.375=12750 a year

200,000 @5.375=10750 a year

why pay more

Answer 2

you probably have negative equity in the house since you haven't been paying any principal, and the house value has probably gone down, so you might not be able to refi.  by my calculation, your monthly pmt (principal and interest only)would increase from about $900 to about 1250 a month - from this $350 increase, principal starts at 185 a month and increases - so by refinancing, you're paying $165 a month more in interest. If you current mortgage allows it, and you can afford it start making additional principal payments of $185 per month and you'll be achieving the same result while saving $165 a month in interest

Answer 3

No. Paying an extra 1% interest is a bad idea.

Answer 4

Can't answer without more information:  What is the term of your current mortgage?  Am I correct is stating that with your current mortgage you are paying interest only? (no principal - so you still owe $200,000 - right?) - when do you start paying off principal?  Is your rate fixed for a certain length of time?