Refinance to a 20 year mortgage?

[Eva Morel]

Hey there!

Just wanted to get some opinions on what you guys think about refinancing my duplex.

ARV 250,000$

Mortgage Balance 201,000$

Currently have 30 year loan w/ 4.25%

I’m seriously considering to refinance to a 20 year these are the benefits

-loan at 3.35%

-shave off 68,000$ in interest

-shorten length of mortgage by 8 years (I’ve owned for 2)

- be debt free sooner than later

The con would be

-pay an approximate extra 150$ per month

-5,500$ in closing costs (the closing costs can be worked into the new loan)

I cash flow the duplex right now at 550-600$/month, refinancing would still allow me to cash flow just at like 4-450$/month. I currently work as a nurse making decent income (80,000$ annually) and I don’t plan on quiting any time soon, maybe decrease hours once I get my real estate license and more properties but overall I’m not dying to quit being a nurse. I’m invested in owning the duplex for the long haul as part of my retirement strategy. I do want to buy 3 more properties in the future. I’m currently 35 and a 30 year loan really seems daunting to me. Does anyone have deeper insight/opinion about this that would help me to be more informed?

[Jacob Sampson]

Can you just make extra payments?  Then you get all the benefits without the negative of paying the refinancing benefits.