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05-17-2012, 07:31 AM
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#1 (permalink)
| | Hanging with Smokey
Join Date: Jan 2008  Location: covington, ga
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| Mortgage refi question
I have recently been looking into refinancing my home. I currently have 11 yrs 11 mo left on a 15 year loan at 4.5%. With the rates on a current 15 yr loan(between 3-3.5%, my payments would drop about $200 a month. Also, I would pay about $3,000 less over the life of the new 15 yr loan compared to what is left on my current loan. I don't really "need" the extra $$ each month but it would give us a little more breathing room. Just curious at what anyone else thinks.
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Good judgment is obtained from experience…. experience is obtained from bad judgment. | 
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05-17-2012, 07:37 AM
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#2 (permalink)
| | Rational Thought Allowed?
| Quote:
Originally Posted by jhen713  I have recently been looking into refinancing my home. I currently have 11 yrs 11 mo left on a 15 year loan at 4.5%. With the rates on a current 15 yr loan(between 3-3.5%, my payments would drop about $200 a month. Also, I would pay about $3,000 less over the life of the new 15 yr loan compared to what is left on my current loan. I don't really "need" the extra $$ each month but it would give us a little more breathing room. Just curious at what anyone else thinks. | What are the upfront costs of the refinance?
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Nam esse vitium et non nocere non potest Quote:
Originally Posted by chatt-townVOL I have not sat down and read Gould's works or Dawkin's works...It's the uneducated kids running around these days trying to convince other kids...That's why I choose to pursue attacking popular perceptions... | | |
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05-17-2012, 07:38 AM
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#3 (permalink)
| | Big Member
Join Date: Jul 2010 Location: Brentwood
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| If someone tried to hand you $200 each month, would you take it? | |
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05-17-2012, 07:38 AM
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#4 (permalink)
| | I don't think so!
Join Date: Apr 2010 Location: York Pa
Posts: 9,878
Likes: 2,063
| Compare the cost of what you will save to what it will cost to close the new mortgage. If the fees are less than 3K then overall it is a good deal. Any idea what the fees will be? | 
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05-17-2012, 07:39 AM
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#5 (permalink)
| | Big Member
Join Date: Jul 2010 Location: Brentwood
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| Fees would probably be covered after a few months at a lower payment, so you will more than likely break even in less than a year. | |
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05-17-2012, 07:41 AM
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#6 (permalink)
| | VN conasewer
| Quote:
Originally Posted by Spartacavolus Fees would probably be covered after a few months at a lower payment, so you will more than likely break even in less than a year. | he said he would save $3k over the life of the loan. If the fees are over $3k then do you still think it's worth the refi? | |
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05-17-2012, 07:41 AM
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#7 (permalink)
| | Senior Member
Join Date: Dec 2010 Location: Tampa
Posts: 610
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| Quote:
Originally Posted by jhen713 I have recently been looking into refinancing my home. I currently have 11 yrs 11 mo left on a 15 year loan at 4.5%. With the rates on a current 15 yr loan(between 3-3.5%, my payments would drop about $200 a month. Also, I would pay about $3,000 less over the life of the new 15 yr loan compared to what is left on my current loan. I don't really "need" the extra $$ each month but it would give us a little more breathing room. Just curious at what anyone else thinks. | Depends on how much it will cost you to refinance. Also, if you are planning to move in the next five years, I would not refinance now. | |
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05-17-2012, 07:45 AM
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#8 (permalink)
| | Big Member
Join Date: Jul 2010 Location: Brentwood
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| Quote:
Originally Posted by utvolpj he said he would save $3k over the life of the loan. If the fees are over $3k then do you still think it's worth the refi? |
$200 month savings over 10 yrs is 24K. And the fees shouldn't be that much anyway, but it would still only take him 1.5 years to cover his fees.
Something doesn't add up, or I need my coffee. | |
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05-17-2012, 07:47 AM
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#9 (permalink)
| | Senior Member
Join Date: Dec 2010 Location: Tampa
Posts: 610
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| Quote:
Originally Posted by Spartacavolus $200 month savings over 10 yrs is 24K. And the fees shouldn't be that much anyway, but it would still only take him 1.5 years to cover his fees.
Something doesn't add up, or I need my coffee. | I think he is factoring in that with a new mortgage, he will pay for 15 years versus 11+ staying with his current mortgage. | |
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05-17-2012, 07:54 AM
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#10 (permalink)
| | Hanging with Smokey
Join Date: Jan 2008 Location: covington, ga
Posts: 52,690
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| Quote:
Originally Posted by YorkVol Compare the cost of what you will save to what it will cost to close the new mortgage. If the fees are less than 3K then overall it is a good deal. Any idea what the fees will be? | That is with me estimating the closing cost figured in. | |
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05-17-2012, 07:56 AM
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#11 (permalink)
| | Hanging with Smokey
Join Date: Jan 2008 Location: covington, ga
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| Quote:
Originally Posted by OldandStillaVol Depends on how much it will cost you to refinance. Also, if you are planning to move in the next five years, I would not refinance now. | No plans to move anytime soon. Guessing we'll stay put till the kids get out pf school if possible. | |
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05-17-2012, 07:57 AM
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#12 (permalink)
| | Big Member
Join Date: Jul 2010 Location: Brentwood
Posts: 21,129
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| Quote:
Originally Posted by OldandStillaVol I think he is factoring in that with a new mortgage, he will pay for 15 years versus 11+ staying with his current mortgage. |
my bad. Didn't think about going from 11 to 15.
I wouldn't do it.
Man, you are just a few years from paying it off. I'd consider even getting more aggressive and paying a little extra on the principal every month or so and you could get it paid off even quicker.
Or what about 10 yr? Knock a year off and probably lower the rate? May save you 1000's in interest. | |
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05-17-2012, 07:59 AM
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#13 (permalink)
| | Hanging with Smokey
Join Date: Jan 2008 Location: covington, ga
Posts: 52,690
Likes: 453
| Quote:
Originally Posted by therealUT What are the upfront costs of the refinance? | A lady I work with just defied a loan that was about 30,000 more than mine and she paid a little over 2,000 in fees. I figured in 2,000. Not sure though. | |
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05-17-2012, 07:59 AM
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#14 (permalink)
| | Rational Thought Allowed?
| If you have already figured in the closing costs and you will still save $3K overall, and $200/month, I see no reason (particularly if you do not plan on moving) not to refinance.
__________________
Nam esse vitium et non nocere non potest Quote:
Originally Posted by chatt-townVOL I have not sat down and read Gould's works or Dawkin's works...It's the uneducated kids running around these days trying to convince other kids...That's why I choose to pursue attacking popular perceptions... | | |
| | |
05-17-2012, 07:59 AM
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#15 (permalink)
| | Senior Member
Join Date: Dec 2010 Location: Tampa
Posts: 610
Likes: 49
| Quote:
Originally Posted by jhen713 No plans to move anytime soon. Guessing we'll stay put till the kids get out pf school if possible. | In that case, I'd probably vote yes to refinancing. Might want to check whether they offer a 10 yr refi at an even lower rate. Good luck. | |
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