I am trying to figure out what to do when it comes to refinancing. I am thinking of putting all my loans into one loan and doing it that way.
Here's what I have now (all loans are no escrow, principal and interest only):
Main house has about 238K balance at 3.625. This loan was originally done in 2012 and the regular note was 1,368 per month but I was paying $2,500 a month to knock down the principal and be house note free sooner than later. Then we did renovation in 2015. I took out a Second mortgage at 7.1% for 93K over 15 years this loan started in fall of 2015. The way I saw it is I was already comfortable paying 2,500 per month and the new note was 845 a month. So I still paid 2,500 per month but paid 1,368 to the main mortgage and 1,132 to the second loan since it has a higher interest rate. Current balance on the second mortgage is 47,000 or very close.
I have two duplexes. First Duplex purchased in 2012 for 194,500. I did a 30 year loan at 4.25% and my note is 718 per month. Lender told me if I paid $1,100 a month I'd pay it off in 15 years instead of 30 so I paid 1,100 every month. Current balance is 82,500 or very close to that.
Second duplex I purchased in 2013 and paid 178,000. I did a 30 year loan at 4.75 and the note was 662 a month. Lender said if I paid 975 a month I'd pay it off in 15 years and I have paid that amount since first payment. Current balance is 90,500 or very close.
So what I am thinking of doing is paying off the highest interest rate balance on that second mortgage out of personal savings. That will eliminate 47K of debt. So that should leave me with 411K give or take between house and two rentals. I could roll that into one refi loan and accelerate the payments over 10-15 years.
The quote I got from one person was for $420,000 (with lumped in closing costs) at 2.65% over 10 years which would be $3,979 a month. Or I could do a 30 year term at 2.99% at 1,769 per month. If I did 30 year I'd most certainly pay extra bc I want to pay it off early but it just gives me some wiggle room if something happens and we have money issues come up for whatever reason. Right now I pay $4,600 between all my notes so even with 10 year option I will be saving money. I’m 41 and want to retire at 52 ideally. That’s why the ten year option is appealing.
I just can't figure out how much I'd save doing either of these deals vs just keep doing what I am doing now and pay off the second mortgage and go back to paying 2,500 per month to my main mortgage. This would be no refinance done at all.
If I do her 10 year plan my math tells me total payments over that period would be 477,480. Can you tell me how much I would pay over the life of the main mortgage at 2500 per month, and both duplexes at 1,100 month for the first one and 975 a month for the second?
I know this was a lot. Appreciate any input. I feel like if I was better at excel I could plug it in and see it plain as day. But I’m not so hopefully someone smarter than me can point me in right direction. Thanks in advance.
