- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Pay down mortgage and refinance to 15 yr or pay off all other debt?
Posted on 3/27/19 at 12:25 pm
Posted on 3/27/19 at 12:25 pm
If you had the option to put enough money toward your mortgage to pay it down enough to refinance to a 15 yr and still lower your monthly note by $250 or pay off all other debt and leave the mortgage alone, saving you $1,000/month, which would you do?
***Mortgage currently has 27 years left and all other debt that you would otherwise pay off would be paid off within 3-4 years anyway.
ETA interest rates
Car - 2.9%
Car - 4.25
both used cars so higher interest rates
Personal loan - 6%
Credit card - 0% until January 2020 I believe.
The house is at 3.4%.
***Mortgage currently has 27 years left and all other debt that you would otherwise pay off would be paid off within 3-4 years anyway.
ETA interest rates
Car - 2.9%
Car - 4.25
both used cars so higher interest rates
Personal loan - 6%
Credit card - 0% until January 2020 I believe.
The house is at 3.4%.
This post was edited on 3/27/19 at 12:43 pm
7
Posted on 3/27/19 at 12:39 pm to TDsngumbo
What are the interest rates for the other debts?
Posted on 3/27/19 at 12:42 pm to Brobocop
Car - 2.9%
Car - 4.25
both used cars so higher interest rates
Personal loan - 6%
Credit card - 0% until January 2020 I believe.
The house is at 3.4%.
Car - 4.25
both used cars so higher interest rates
Personal loan - 6%
Credit card - 0% until January 2020 I believe.
The house is at 3.4%.
Posted on 3/27/19 at 12:53 pm to TDsngumbo
quote:
If you had the option to put enough money toward your mortgage to pay it down enough to refinance to a 15 yr and still lower your monthly note by $250 or pay off all other debt and leave the mortgage alone, saving you $1,000/month, which would you do?
quote:
The house is at 3.4%.
3.4% for a 30 year loan is fricking great.
Posted on 3/27/19 at 1:20 pm to TDsngumbo
Pay off personal loan at 6 percent first. If you have PMI on your thirty year loan, pay that off. If not, work towards the higher percent car. Then go back to mortgage. 3.4 percent home loan is amazing. I find it hard to believe a refinance brings you out on top. Put more towards principal each month IMO.
Posted on 3/27/19 at 2:12 pm to TDsngumbo
Is a recast or re-amortization an option on your mortgage? 3.4% is going to be hard to beat.
A recast is where you put down a lump sum extra payment on your mortgage and then you re-amortize the remaining principle over the remaining period of the mortgage. This would allow you to still lower the monthly payment and keep 3.4%. I think the best you could do on a 15 year mortgage is around 3.625% and you'd likely have to also pay closing costs to refinance.
I would probably pay off all the other debt and tackle the mortgage later.
A recast is where you put down a lump sum extra payment on your mortgage and then you re-amortize the remaining principle over the remaining period of the mortgage. This would allow you to still lower the monthly payment and keep 3.4%. I think the best you could do on a 15 year mortgage is around 3.625% and you'd likely have to also pay closing costs to refinance.
I would probably pay off all the other debt and tackle the mortgage later.
Posted on 3/27/19 at 4:52 pm to TDsngumbo
quote:Have you checked mortgage rates lately? 3.4% is a lot better rate than you’d probably get with today’s rates
The house is at 3.4%.
Posted on 3/27/19 at 4:53 pm to MrJimBeam
quote:
If you have PMI on your thirty year loan, pay that off. If not, work towards the higher percent car.
Why? the PMI plus interest rate could very well be below the 4.25% car loan. And it's tax deductible
Posted on 3/27/19 at 6:36 pm to TDsngumbo
Man this seems like a no brainer to me.
Worry about the mortgage last. And I don't think I'd refinance after paying off the other debt. Just put more towards principle.
Worry about the mortgage last. And I don't think I'd refinance after paying off the other debt. Just put more towards principle.
Posted on 3/28/19 at 4:47 am to bbap
Why refi at all?
When we purchased our home the difference between 15 and 30 year rates were negligible.
So I just went 30, used the monthly difference to kill our car loans one at a time (dropped some additional cash bonuses to speed things up) and once done waterfalled what I had been spending on the cars into attacking the mortgage which is now set to payoff in 8-10 years without any additional cash out of pocket or lump sum.
Lots of good ways to accomplish your goals, just not sure the refi makes sense given your rate.
When we purchased our home the difference between 15 and 30 year rates were negligible.
So I just went 30, used the monthly difference to kill our car loans one at a time (dropped some additional cash bonuses to speed things up) and once done waterfalled what I had been spending on the cars into attacking the mortgage which is now set to payoff in 8-10 years without any additional cash out of pocket or lump sum.
Lots of good ways to accomplish your goals, just not sure the refi makes sense given your rate.
Posted on 3/28/19 at 8:33 am to tide06
I'd refinance the house...........
Posted on 3/28/19 at 11:19 am to tide06
quote:
Why refi at all?
I wouldn't
Posted on 3/28/19 at 12:28 pm to TDsngumbo
Don’t pay off the house. 3.4/30 is great. It’s tax deductable interesr.
You could pay down principal until the pmi is gone.
Pay off everything else first, and then save more. You should be able to make well above 3.4% with the cash you save by not paying your house off. Market, rental properties, outside investments, etc.
You could pay down principal until the pmi is gone.
Pay off everything else first, and then save more. You should be able to make well above 3.4% with the cash you save by not paying your house off. Market, rental properties, outside investments, etc.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News