Refinance Personal Residence

[Matthew Geiger]

Hi,

I am just getting started and wanted to free up money to be more flexible. My current home has LTV of about 50% and I am on a conventional 30 year at 3.5%. I've been paying Bi weekly payment and will continue to pay the same amount and bi-weekly. I am refinancing a 7/6 Arm at 1.99%. My plan is to not change the payment amount and just take advantage of the interest rate. At the end of 7 years I'll owe in the high 150s and I will either pay off then if the rates are moving significantly. I'll also be paying a chunk of the old escrow balance once refi is complete. Does this sound like I am covering everything here or am I making a poor choice?

[Randy Bloch]

If your objective is free up money and create more flexibility why maintain the same payment schedule?  I would would pay the minimum.  Equity in your property residence is dead money.  Did you consider a cash out refi?  

Bi weekly payment plans are really marketing trick to get you make a couple extra payments per year and pay down principal faster.  

Back to your objective...is it free up cask and create flexibility or to pay off your primary residence?