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apb17
My guys
Member since 5/06 2173 total posts
Name:
Alli
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Tell me your thoughts on this refinancing situation...
We are going through the process of a refi. We would like to reduce our 30 year mortagage down to a 15 and roll our home eq loan into the new mortgage. We thought that we would be saving a few hundred dollars/month. The paper work arrived and says we'd only be saving $40/month.
My gut says to still do the refi since we'll be cutting the mortgage down by 9 years. What do you ladies think?
Oh, we'd only be adding one year to our home eq loan as we did it last year.
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Posted 12/23/08 2:18 PM  |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Tell me your thoughts on this refinancing situation...
what rate were you paying?
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| Posted 12/23/08 2:22 PM |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: Tell me your thoughts on this refinancing situation...
Just at a quick glance,
9 years x 12 months x $40 = $4,320.
Would you have closing costs or other costs that would be more than that amount? If so, it probably wouldn't make sense. unless you just want to pay it off sooner and have the convenience of paying the mortgage and home equity together.
But I am no expert, so wait for more replies. 
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| Posted 12/23/08 2:23 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Tell me your thoughts on this refinancing situation...
it would be 15 years by 12 months times $40
so $7200
techincally
but don't forget about the 9 years of interest you are savings
Message edited 12/23/2008 2:27:17 PM.
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| Posted 12/23/08 2:26 PM |
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apb17
My guys
Member since 5/06 2173 total posts
Name:
Alli
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Re: Tell me your thoughts on this refinancing situation...
Posted by Beth1210
what rate were you paying?
mortgage=6.5% (24 yrs left)
home eq=6.99% (14 years left)
**New rate=4.25% for 15 years
-we would roll closing costs in -approx.$8200
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| Posted 12/23/08 2:27 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Tell me your thoughts on this refinancing situation...
Posted by apb17
Posted by Beth1210
what rate were you paying?
mortgage=6.5% (24 yrs left)
home eq=6.99% (14 years left)
**New rate=4.25% for 15 years
-we would roll closing costs in -approx.$8200
give me 5 minutes and I will figure out the interest you are saving!
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| Posted 12/23/08 2:29 PM |
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dpli
Daylight savings :)
Member since 5/05 13973 total posts
Name:
D
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Re: Tell me your thoughts on this refinancing situation...
Posted by Beth1210
Posted by apb17
Posted by Beth1210
what rate were you paying?
mortgage=6.5% (24 yrs left)
home eq=6.99% (14 years left)
**New rate=4.25% for 15 years
-we would roll closing costs in -approx.$8200
give me 5 minutes and I will figure out the interest you are saving!
Told you to wait for an expert 
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| Posted 12/23/08 2:32 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Tell me your thoughts on this refinancing situation...
this is just a rough estimate
I based it on a $400K loan amount - since I didn't have real numbers
and I didn't break down the second
but on $400K for 30 years
you pay $510K in interest (at 6.5%)
on $400K for 15 years - you pay $142K in interest (4.25%)
it's a no brainer to me
if you did $400K at 30 years and the 4.25% rate (which you wont get on a 30 years- you might be 4.99% now)
you would pay $308K in interest
on a 15 year mortgage- you payment would normally go up- so based on the fact it went down a little- you are really making out
you might not see the savings monthly in the payment- but you will be saving a TON
Message edited 12/23/2008 2:38:09 PM.
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| Posted 12/23/08 2:37 PM |
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apb17
My guys
Member since 5/06 2173 total posts
Name:
Alli
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Re: Tell me your thoughts on this refinancing situation...
Posted by Beth1210
this is just a rough estimate
I based it on a $400K loan amount - since I didn't have real numbers
and I didn't break down the second
but on $400K for 30 years
you pay $510K in interest (at 6.5%)
on $400K for 15 years - you pay $142K in interest (4.25%)
it's a no brainer to me
if you did $400K at 30 years and the 4.25% rate (which you wont get on a 30 years- you might be 4.99% now)
you would pay $308K in interest
on a 15 year mortgage- you payment would normally go up- so based on the fact it went down a little- you are really making out
you might not see the savings monthly in the payment- but you will be saving a TON
That's what I thought...thanks so much..I really needed some outside advice-not that I doubt Dh but I needed some more confirmation.
Thanks!
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| Posted 12/23/08 2:40 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Tell me your thoughts on this refinancing situation...
what Beth said, lol
do it, its a no-brainer.
Even if you are breaking even on the monthy payment, you will have your mortgage paid off much earlier-
and its not even including the opportunity cost of paying off your mortgage 9 years earlier (instead of paying your mortgage, you will have the $$ to invest).
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| Posted 12/23/08 2:40 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Tell me your thoughts on this refinancing situation...
your welcome
it helps to see the big picture
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| Posted 12/23/08 2:45 PM |
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