Would it be better to pay large lump sum to current mortgage before refinancing?
Currently looking at refinancing home, but can’t decide if it would be better to add additional monies to current mortgage to lower amount to be refinanced, or refinance and put that sum onto new mortgage. A: It depends on your reasoning for refinancing. Are you trying to get a lower monthly payment? Save more money in the long run by lowering your interest rate? Trying to get cash back to pay off some debts? I’ve been working in mortgage for over a year and I’ve seen a ton of scenarios, especially now with the rates being so low. If you currently have an interest rate that is more than one full percentage point higher than the current rates, you MIGHT want to consider refinancing. Instead of puting a lump sum of money towards the current mortgage, use it as a down-payment on the new refinance. Check out a local credit union if you have one. They are not-for-profit. That means, they DO make profits so that they can function as a business and offer more products, but that is not the foc
