If I refinance my 30 year mortgage to a 15 year mortgage, do I get money back from my initial loan?
Thursday, July 16th, 2009
Peter C asked:
We have had a 30 year fixed mortgage for 5 years. Most of the payments made went to interest. If we refinance to a new company to a 15 year fixed rate mortgage (rates are low), would we get any sort of credit back from the first mortgage (since we’ve been paying interest payments mostly as-if we were going to have the loan for 30 years but now it’s going to be paid early? We’ve barely paid any of the principle in the past 5 years, so I’m wondering if we get any credit-back, so to speak… please advise.
Daniel
We have had a 30 year fixed mortgage for 5 years. Most of the payments made went to interest. If we refinance to a new company to a 15 year fixed rate mortgage (rates are low), would we get any sort of credit back from the first mortgage (since we’ve been paying interest payments mostly as-if we were going to have the loan for 30 years but now it’s going to be paid early? We’ve barely paid any of the principle in the past 5 years, so I’m wondering if we get any credit-back, so to speak… please advise.
Daniel
