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Started By
Message
Is it worth it to refinance?
Posted on 10/8/21 at 8:14 am
Posted on 10/8/21 at 8:14 am
This should be simple for finance guys. If I am planning on selling my house in 2 years, is it worth it to refinance? The deal that I got knocks 5 years off the total mortgage and brings the interest rate from 3.7 to 3.1.
The monthly note will effectively be the same. I just don’t want to pay (or roll into the loan) a bunch of closing costs if it isn’t a good decision to begin with.
If this was my forever home, it would be a no brainer.
Would I be better off just sticking with current mortgage and paying a couple hundred more every month?
The monthly note will effectively be the same. I just don’t want to pay (or roll into the loan) a bunch of closing costs if it isn’t a good decision to begin with.
If this was my forever home, it would be a no brainer.
Would I be better off just sticking with current mortgage and paying a couple hundred more every month?
9
Posted on 10/8/21 at 8:16 am to Jibbajabba
I'd think over that time frame the benefit would be negligible.
Do you have any other information about the Current Principal+Interest vs what you're quoted for future Principal + Interest?
Do you have any other information about the Current Principal+Interest vs what you're quoted for future Principal + Interest?
Posted on 10/8/21 at 8:29 am to Jibbajabba
quote:
Is it worth it to refinance
quote:
selling my house in 2 years
quote:
interest rate from 3.7 to 3.1.
To me, this is a lot of effort for very little return if any. If you were there 5 more years, then sure.
Posted on 10/8/21 at 8:44 am to Jibbajabba
I have never refi'd before without at least a full 1% of interest reduction. I don't see this being financially beneficial at all for a place you'll only be in a few more years.
Posted on 10/8/21 at 9:07 am to Jibbajabba
No. If you are moving/selling in 2 years, it does not make sense.
Posted on 10/8/21 at 9:10 am to Jibbajabba
quote:
This should be simple for finance guys. If I am planning on selling my house in 2 years, is it worth it to refinance? The deal that I got knocks 5 years off the total mortgage and brings the interest rate from 3.7 to 3.1.
The monthly note will effectively be the same. I just don’t want to pay (or roll into the loan) a bunch of closing costs if it isn’t a good decision to begin with.
If this was my forever home, it would be a no brainer.
Would I be better off just sticking with current mortgage and paying a couple hundred more every month?
There are a lot of break even calculators online. Plug in the specifics of each loan and you’ll get your answer.
In your case the big deciding factors will be closing cost and loan balance in 24 months. If your loan balance on the refi + closing costs is lower than your balance would be under your current loan, it’s worth it from a financial standpoint.
This post was edited on 10/8/21 at 5:51 pm
Posted on 10/8/21 at 9:21 am to slackster
I just took 7 years off and lowered my payment 15%
My previous rate was 3.4
My previous rate was 3.4
Posted on 10/8/21 at 9:42 am to Jibbajabba
Absolutely not if selling in two years.
Posted on 10/8/21 at 9:44 am to Jibbajabba
Yes max cash out and get a 5yr IO
Posted on 10/8/21 at 9:50 am to Jibbajabba
Probably not worth it if you're planning to sell in 2 years. Unless you're getting a sweet deal on closing costs and loan origination fees, I don't think you'll come out ahead with a 0.6% rate reduction over only 2 year time span.
Posted on 10/8/21 at 10:23 am to SkinnyTestaverde
What did you go from and to?
This post was edited on 10/8/21 at 10:23 am
Posted on 10/11/21 at 3:05 pm to Jibbajabba
I have a great comparison calculator I can do for you or do it online- Warning if you go online, do not put your personal information in there. You will get a million random calls- and stay local if you do refinance
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