Members sleewell Posted January 2, 2013 Members Share Posted January 2, 2013 considering refinancing my mortgage, anyone else looking? currently i am at 4.875% with a 123k remaining balance. zillow and property tax records value the home in the upper 140s but i am not looking to take any money out, just want to lower my rate and get this debt paid off quicker. i am getting other quotes but the bank i work at has proposed 3.375% with only 1900 in closing costs (rolled into new loan) and i would only have 350 in out of pocket expenses for an appraisal. right now i am paying 150 extra each month and still plan to do that (or more) moving forward either way. i plan to keep the house for the long haul; possibly renting it out if i ever decide to move. I had them amortize my exsisting loan vs what they are proposing. if i stick with my current loan i will be paid off in 228 months, they have the new loan getting paid off in 189 months but that would be even sooner because i would get a refund from my current escrow that i can apply directly to the balance. what do you think? seems like the no brainer decisions always have other things to think about which is why i am asking. thanks, bill Link to comment Share on other sites More sharing options...
Members Mesa4x12er2 Posted January 2, 2013 Members Share Posted January 2, 2013 Sounds like we have the same house, same rate, and same remaining amounts. Link to comment Share on other sites More sharing options...
Members Mesa4x12er2 Posted January 2, 2013 Members Share Posted January 2, 2013 Sounds like we have the same house, same rate, and same remaining amounts. Link to comment Share on other sites More sharing options...
Members Kenny Powers Posted January 2, 2013 Members Share Posted January 2, 2013 honestly dont see any reason why you wouldn't Link to comment Share on other sites More sharing options...
Members Kenny Powers Posted January 2, 2013 Members Share Posted January 2, 2013 honestly dont see any reason why you wouldn't Link to comment Share on other sites More sharing options...
Members "sasquatch" Posted January 2, 2013 Members Share Posted January 2, 2013 do it and setup half payments, bi-monthly and that will reduce # of years. i think on a 30-year loan it knocks off 7 years. this is b/c you are paying half of your mortgage on the first of the month, before interest accrues on your mortgage by the end of the month. i just refinanced from 4.875 to 3.625 and went 20-year loan, bi-monthly and will have it paid off in 15 years. Link to comment Share on other sites More sharing options...
Members "sasquatch" Posted January 2, 2013 Members Share Posted January 2, 2013 do it and setup half payments, bi-monthly and that will reduce # of years. i think on a 30-year loan it knocks off 7 years. this is b/c you are paying half of your mortgage on the first of the month, before interest accrues on your mortgage by the end of the month. i just refinanced from 4.875 to 3.625 and went 20-year loan, bi-monthly and will have it paid off in 15 years. Link to comment Share on other sites More sharing options...
Members Guvnor Posted January 2, 2013 Members Share Posted January 2, 2013 If the value of the cash flow from the amount saved month over month is greater than the cash outlay--$1900-- then yes. In other words, would you pay $1900 to receive the saved monthly amount? Link to comment Share on other sites More sharing options...
Members Guvnor Posted January 2, 2013 Members Share Posted January 2, 2013 If the value of the cash flow from the amount saved month over month is greater than the cash outlay--$1900-- then yes. In other words, would you pay $1900 to receive the saved monthly amount? Link to comment Share on other sites More sharing options...
Members sleewell Posted January 2, 2013 Author Members Share Posted January 2, 2013 Originally Posted by Kenny Powers honestly dont see any reason why you wouldn't yeah i know. i just hate to make such a large decision without doing as much research as possible. i would have to time the appraisal correctly but that is not a huge deal. +1 on paying every 2 weeks, that really helps out. Link to comment Share on other sites More sharing options...
Members sleewell Posted January 2, 2013 Author Members Share Posted January 2, 2013 Originally Posted by Kenny Powers honestly dont see any reason why you wouldn't yeah i know. i just hate to make such a large decision without doing as much research as possible. i would have to time the appraisal correctly but that is not a huge deal. +1 on paying every 2 weeks, that really helps out. Link to comment Share on other sites More sharing options...
Members guitarbilly74 Posted January 2, 2013 Members Share Posted January 2, 2013 definitely do it man. You can do better than 4.8% these days. Link to comment Share on other sites More sharing options...
Members guitarbilly74 Posted January 2, 2013 Members Share Posted January 2, 2013 definitely do it man. You can do better than 4.8% these days. Link to comment Share on other sites More sharing options...
Members NinjaRaf Posted January 2, 2013 Members Share Posted January 2, 2013 Yeah, if youre getting a better rate, and your pay off is 39 months quicker (thats over 3 years!!) Id do that {censored} in a heartbeat. Link to comment Share on other sites More sharing options...
Members NinjaRaf Posted January 2, 2013 Members Share Posted January 2, 2013 Yeah, if youre getting a better rate, and your pay off is 39 months quicker (thats over 3 years!!) Id do that {censored} in a heartbeat. Link to comment Share on other sites More sharing options...
Members fretout Posted January 2, 2013 Members Share Posted January 2, 2013 I'm in the business, and I would highly recommend that everyone that owns a home checks out what they would qualify for if they refi'd. Rates are really, really low! Link to comment Share on other sites More sharing options...
Members fretout Posted January 2, 2013 Members Share Posted January 2, 2013 I'm in the business, and I would highly recommend that everyone that owns a home checks out what they would qualify for if they refi'd. Rates are really, really low! Link to comment Share on other sites More sharing options...
Members diocide Posted January 2, 2013 Members Share Posted January 2, 2013 I'm kind of a noob when it comes to this stuff, but isn't starting your loan over sort of negate any savings you would receive from the refi? I understand if you end up dropping the years, but how much do you really ave by starting over again? Link to comment Share on other sites More sharing options...
Members diocide Posted January 2, 2013 Members Share Posted January 2, 2013 I'm kind of a noob when it comes to this stuff, but isn't starting your loan over sort of negate any savings you would receive from the refi? I understand if you end up dropping the years, but how much do you really ave by starting over again? Link to comment Share on other sites More sharing options...
Members Bob Savage Posted January 2, 2013 Members Share Posted January 2, 2013 Originally Posted by "sasquatch" do it and setup half payments, bi-monthly and that will reduce # of years. i think on a 30-year loan it knocks off 7 years. this is b/c you are paying half of your mortgage on the first of the month, before interest accrues on your mortgage by the end of the month. i just refinanced from 4.875 to 3.625 and went 20-year loan, bi-monthly and will have it paid off in 15 years. Be careful about these. With the ones I've looked at they simply deposit your first monthly payment and then apply it at the same time as the second one which means the savings has nothing to do with your principle being lowered twice a month, it's because you end up making an extra payment or something like that per year. It's been a long time since I looked at one of these programs so I forget the details, but I do recall that in the end I just stuck with paying extra principle every month on my own. Link to comment Share on other sites More sharing options...
Members Bob Savage Posted January 2, 2013 Members Share Posted January 2, 2013 Originally Posted by "sasquatch" do it and setup half payments, bi-monthly and that will reduce # of years. i think on a 30-year loan it knocks off 7 years. this is b/c you are paying half of your mortgage on the first of the month, before interest accrues on your mortgage by the end of the month. i just refinanced from 4.875 to 3.625 and went 20-year loan, bi-monthly and will have it paid off in 15 years. Be careful about these. With the ones I've looked at they simply deposit your first monthly payment and then apply it at the same time as the second one which means the savings has nothing to do with your principle being lowered twice a month, it's because you end up making an extra payment or something like that per year. It's been a long time since I looked at one of these programs so I forget the details, but I do recall that in the end I just stuck with paying extra principle every month on my own. Link to comment Share on other sites More sharing options...
Members 3volved Posted January 2, 2013 Members Share Posted January 2, 2013 I was always told if you can refi and lower your interest rate by at least 1% to do it. Sounds a lot like my situation too. Link to comment Share on other sites More sharing options...
Members 3volved Posted January 2, 2013 Members Share Posted January 2, 2013 I was always told if you can refi and lower your interest rate by at least 1% to do it. Sounds a lot like my situation too. Link to comment Share on other sites More sharing options...
Members sleewell Posted January 2, 2013 Author Members Share Posted January 2, 2013 Originally Posted by diocide I'm kind of a noob when it comes to this stuff, but isn't starting your loan over sort of negate any savings you would receive from the refi? I understand if you end up dropping the years, but how much do you really ave by starting over again? you are starting over only in the term length, you keep your exsisting balance which is much lower than when i took out the loan. so basically you are getting a new loan on your exsisting lower current balance amount and you also get the rates they are offering now which are also lower than when i orginated the loan. Link to comment Share on other sites More sharing options...
Members sleewell Posted January 2, 2013 Author Members Share Posted January 2, 2013 Originally Posted by diocide I'm kind of a noob when it comes to this stuff, but isn't starting your loan over sort of negate any savings you would receive from the refi? I understand if you end up dropping the years, but how much do you really ave by starting over again? you are starting over only in the term length, you keep your exsisting balance which is much lower than when i took out the loan. so basically you are getting a new loan on your exsisting lower current balance amount and you also get the rates they are offering now which are also lower than when i orginated the loan. Link to comment Share on other sites More sharing options...
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