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

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Posted by meansonny

ATL

Member since Sep 2012

25999 posts

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.

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