We currently have a 15-year mortgage at 5.125% and looking to start our early retirement in a few months which means we won’t have a w-2 income soon. We want to refinance to a 30-year to lower our monthly payment and we plan to rent out our house during this next phase of early retirement, probably for a couple of years. How low would the rates have to be for us to trigger the refinancing? We are also under a tight timeline since we are planning to quit our jobs in a few months.
Is refinancing the right move?
Gabbywang
88 XP
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3 replies
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newfi25
357 XP3 months ago
If you are going to rent it out, why would you need to refinance? I can't imagine a 6.5% 30 year mortgage is going to reduce your monthly payment that much. How many years into the 15 year mortgage are you?
Max
240 XP8 months ago
A mortgage calculator or just plain or Excel can figure this out for you.
If rented would the property be cash flow positive? If not, it probably isn't a good candidate for a rental. How many years left do you have on that mortgage?
Also, if you don't plan on living there you may not be eligible for the best rates as if you are truthful you would finance it as an investor and not as a primary home.
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