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Message
re: Refi question
Posted on 7/6/14 at 11:50 am to SpidermanTUba
Posted on 7/6/14 at 11:50 am to SpidermanTUba
So about $50/ month? And if you end up moving before 7 years you loose money bc of the expenses of the refi?
Not worth it to me
Now if you drop the rate by 2%, then it is a whole new ball game
Not worth it to me
Now if you drop the rate by 2%, then it is a whole new ball game
1
Posted on 7/6/14 at 11:55 am to Tigerpaw123
quote:
So about $50/ month? And if you end up moving before 7 years you loose money bc of the expenses of the refi?
We probably would.
Our mean expected return is positive though. Basically if the one of us with a temporary job (no names) is able to gain permanent employment in the area after the temp job is over in 2 1/2 years - we are going to stay permanently.
Also - even if we do have to move there is a very good chance (60/40?) we would retain the property as a rental. So maybe my estimate of 10 years mean expected is even a little low as I figured it based on whether or not we'd personally be living in the house.
quote:
Now if you drop the rate by 2%, then it is a whole new ball game
I would agree that would be a more reasonable trigger point if we had started at like 8 or 9% interest - but there's a good chance I'll never see rates this low again in my life. If this is the trough then it make sense to lock in now.
This post was edited on 7/6/14 at 11:58 am
Posted on 7/6/14 at 12:20 pm to SpidermanTUba
Stop refinancing into 30yr Fixes.
Biggest scam of all time.
Biggest scam of all time.
Posted on 7/6/14 at 12:30 pm to SpidermanTUba
This was the big idea in 2000 or so. How did that turn out?
Live in your house. Get best rate you can. Don't mix stocks sand your personal home. On phone will post a story later .
Live in your house. Get best rate you can. Don't mix stocks sand your personal home. On phone will post a story later .
Posted on 7/6/14 at 12:33 pm to SpidermanTUba
quote:
It works out to like 20k over the life of the loan.
Compare how much you save if you go to 15 yrs. After all, it is your money
Your objective is to get to a point where you are not paying interest on anything. Why give someone extra money each month to use their money? Just pay everything off as quickly as possible, and use your own money
Posted on 7/6/14 at 12:49 pm to SDVTiger
quote:
So if you cash out and neg am yourself are you going to make the mistake of getting back into a 30yr fix?
If the rate is low enough that is exactly the right thing to do. You don't want to pay a higher monthly note to reduce your after-tax rate below the rate of inflation.
Posted on 7/6/14 at 1:03 pm to SpidermanTUba
Whatever you do don't take the mortgage interest deduction because then you would be using one of those evil tax loopholes that you criticize so much on the Poli Board.
Posted on 7/6/14 at 6:49 pm to SpidermanTUba
What is your current payoff amount?
0.65% isn't a big savings... but the bigger the loan amount, the more benefit you will receive.
The amount of savings at the tail end of the loan doesn't sound like it is worth the effort/cost to refi. Did you say $50,000?
The only way you see a tangible benefit is if the lender is paying all closing costs (lender and attorney fees). AND if you are taking the monthly savings and doing something extremely useful with them (i.e. pay what you currently pay into your new note with a lower interest rate).
Good luck. Don't fall into the penis envy trap (refinancing because you want a rate at or lower than your neighbors). Be sure it makes sense, or you are wasting a lot of professionals' time.
0.65% isn't a big savings... but the bigger the loan amount, the more benefit you will receive.
The amount of savings at the tail end of the loan doesn't sound like it is worth the effort/cost to refi. Did you say $50,000?
The only way you see a tangible benefit is if the lender is paying all closing costs (lender and attorney fees). AND if you are taking the monthly savings and doing something extremely useful with them (i.e. pay what you currently pay into your new note with a lower interest rate).
Good luck. Don't fall into the penis envy trap (refinancing because you want a rate at or lower than your neighbors). Be sure it makes sense, or you are wasting a lot of professionals' time.
Posted on 7/6/14 at 7:05 pm to LSUFanHouston
Client refi'd end of 2005. Pulled a bunch of money and invested in the market. House value crashed, went underwater. Stock market crashed, freaked out, pulled out of market which locked in losses. Then, lost his job. Had to move out of state to get a new job, and had to do a short sale on his house.
Refinance to get a lower interest rate, or maybe to spend the proceeds on the house in improvements if they will actually benefit the house. Take the money you save on interest each month, add to principal. That's the best way to refinance.
Refinance to get a lower interest rate, or maybe to spend the proceeds on the house in improvements if they will actually benefit the house. Take the money you save on interest each month, add to principal. That's the best way to refinance.
Posted on 7/6/14 at 8:42 pm to SpidermanTUba
so basically you are hurting for cash...don't give us this "down the road" bullshite.
Posted on 7/7/14 at 12:16 am to foshizzle
quote:
If the rate is low enough that is exactly the right thing to do. You don't want to pay a higher monthly note to reduce your after-tax rate below the rate of inflation.
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