Mortgage refinance crew : this a good deal?

americanwit

OT Supporter
Nov 28, 2004
1,845
Houston, TX
Current loan 30 yr 3.75 255k balance house value ~370k

New loan 30 yr 2.75 1 pt ~5800 total fees will pay some addl principal to bring balance to 225k (want flexibility for poss second kiddo)

I see slightly better terms advertised buts always places I have never heard of - any experiences?
 
TS
TS
americanwit

americanwit

OT Supporter
Nov 28, 2004
1,845
Houston, TX
yeah i wasn't happy about the pt but 5800 total fees doesn't seem insane, breakeven looks like ~3 yrs - Just purchased last December will be here 8-10 if I had to guess.

oh looks like I should tag @saabguy from other threads
 
  • Like
Reactions: saabguy
TS
TS
americanwit

americanwit

OT Supporter
Nov 28, 2004
1,845
Houston, TX
Refi a 30 year for another 30 year is, in my opinion, a financial treadmill

even with an interest drop, it makes no sense

Was looking at a 15 but want the flexibility if we have a second kid. Am currently paying additional on this and would continue to do so unless we did have the second baby - daycare x 2 is FML expensive.
 
  • Like
Reactions: jgon842

Cashishift

Well-Known Member
Dec 12, 2000
60,020
Omaha, NE
yeah i wasn't happy about the pt but 5800 total fees doesn't seem insane, breakeven looks like ~3 yrs - Just purchased last December will be here 8-10 if I had to guess.

oh looks like I should tag @saabguy from other threads

Have you checked a local credit union? I would be getting multiple quotes.
 

vr6vdub

Formz can't handle his emotions.
OT Supporter
Apr 11, 2009
42,403
nova
Sounds like you were already 7-10 years in. That amortization gonna reset. :o
 

MZ2215

Yep
Jul 21, 2001
14,958
Michigan
anytime you can pay something off sooner with less paid to interest, then you are better off

paying longer for less interest is not a win to me

right, but if you lower your rate and continue to make the old payment, you'll pay it off faster and with less paid in interest. It doesn't sound like he needs relief from the payment, just potential future flexibility
 

Cashishift

Well-Known Member
Dec 12, 2000
60,020
Omaha, NE
Was looking at a 15 but want the flexibility if we have a second kid. Am currently paying additional on this and would continue to do so unless we did have the second baby - daycare x 2 is FML expensive.

I was able to use a 25 to my advantage, some places offer a 20.
 

vr6vdub

Formz can't handle his emotions.
OT Supporter
Apr 11, 2009
42,403
nova
anytime you can pay something off sooner with less paid to interest, then you are better off

paying longer for less interest is not a win to me
They also front load the interest so less money goes to principal
 

993kgt

building an airplane whee
Nov 7, 2001
20,618
Destin, FL
In a personal residence, absolutely. You're going to do what, pay yourself a 0% return when you sell, if you sell? :ugh:

umm, what? pay yourself? a personal residence pays you back when you are exempt from capital gains

buy a house for $200, sell for $300, you earn $100k tax free

Pay $0 in interest for 10 years of ownership, and you are only losing the opportunity cost of $200k tied up for 10 years, is that you argument? It's not a great one-

for a primary personal residence, owing the bank less than 70% of the purchase price (and assumed value) of the property should be everyone's goal, less than 50% gives you lots of flexibility for bad days/years

paying the fees to refinance and "roll out" your mortgage for another 30 year to save 1% of interest? i don't think one can make that make sense on paper, especially with the points being charged in this example
 

93rx7

OT Supporter
Feb 14, 2009
43,923
Your base
if you cant do the basic math required to figure out if a refi is worth it or not you should take whatever money you have saved right now and go back to school for a couple of years
 
  • Haha
Reactions: Pogi

Users who are viewing this thread

About Us

  • Please do not post anything that violates any Local, State, Federal or International Laws. Your privacy is protected. You have the right to be forgotten. Site funded by advertising, link monetization and member support.
OT v15.8.1 Copyright © 2000-2022 Offtopic.com
Served by fu.offtopic.com

Online statistics

Members online
430
Guests online
62
Total visitors
492

Forum statistics

Threads
369,544
Messages
16,893,975
Members
86,873
Latest member
vitalesan