refinanced mortgage

[Bird_Of_Prey]

Re: refinanced mortgage

No matter what, it is nice to reduce the monthly payment.

I suggest if you are going from a 30 year mortgage with 27 years left on it to a new 30 year mortgage, that you pay the extra amount each month needed to pay off the new mortgage over 27 years. Otherwise, you're just moving the payment from now to later - plus adding a huge amount of interest.

Some wisdom here, but let me add slightly more. Refinancing can be a vicious cycle. You have to factor in the costs involved with the new loan, and if the savings is going to catch up to that cost. Lets say you save $200 per month, but the new loan cost you $6000, you won't break even on the cost for 30 months. Now lets say you refi again before those 2 1/2 years are up, well you just lost all that dough, reset the interest, and have new costs to pay. Your better off looking for a loan with the same payment and a shorter term. If rates drop enough that you can get a 20 year fixed with the same payment as your current 30, you just took out 10 years of P&I out of the calculations.

i understand its borrowed i was talking in the hypothetical...the payments on that 160k is over 1200 a month in payments...i can do a lot of things with 1200 a month is what it boils down to. and you didnt mention you were renting two units...that changes things somewhat, but id rather own three places that are not adjoined so i dont have neighbors on the other side of the wall

I don't have anyone on either side, just above.

[firebirddrvr]

Re: refinanced mortgage

thats even worse...i know what people above can be like (weve been that at my friends appartments before) haha

[kristen]

Re: refinanced mortgage

Some wisdom here, but let me add slightly more. Refinancing can be a vicious cycle. You have to factor in the costs involved with the new loan, and if the savings is going to catch up to that cost. Lets say you save $200 per month, but the new loan cost you $6000, you won't break even on the cost for 30 months. Now lets say you refi again before those 2 1/2 years are up, well you just lost all that dough, reset the interest, and have new costs to pay. Your better off looking for a loan with the same payment and a shorter term. If rates drop enough that you can get a 20 year fixed with the same payment as your current 30, you just took out 10 years of P&I out of the calculations.

but you do what we are gonna do....take that extra $300 a month for the next year or so(if not more) add that to your princpal payment and you will lower your years on the home by a good 3 years. you have to be smart with you money...

might not look like much, but every extra cent that goes to the prin. is worht it. by the time i'm in my early to mid 40's i hope to have the home paid off, that will free up alot of college money for the kids :)

[sac2165]

Re: refinanced mortgage

FWIW - We refinanced our place last year, ended up paying an extra $125/month -- Went from 30 to 10 years.

[Bird_Of_Prey]

Re: refinanced mortgage

but you do what we are gonna do....take that extra $300 a month for the next year or so(if not more) add that to your princpal payment and you will lower your years on the home by a good 3 years. you have to be smart with you money...

might not look like much, but every extra cent that goes to the prin. is worht it. by the time i'm in my early to mid 40's i hope to have the home paid off, that will free up alot of college money for the kids :)

Consult a financial planner. If your kids college is a priority for you, a 529 plan might be a better place to park that money. Also, some states have a plan where you can lock in tuition at todays rates.

[firebirddrvr]

Re: refinanced mortgage

FWIW - We refinanced our place last year, ended up paying an extra $125/month -- Went from 30 to 10 years.

that is not bad at all! what interest rate were you at and what are you at now?

[kristen]

Re: refinanced mortgage

was kidding...we have money wrapped up in bonds right now for gabe, and in the next year or 2 we will stop buying bonds and put the money into cd's...if rates are better.

[firebirddrvr]

Re: refinanced mortgage

was kidding...we have money wrapped up in bonds right now for gabe, and in the next year or 2 we will stop buying bonds and put the money into cd's...if rates are better.

cd rates are so aweful right now! our bank of america cd has a rate around what savings account probably used to be. at our next renewal date we are likely switching our cd to ally as they have the best rates weve been able to find

[sac2165]

Re: refinanced mortgage

that is not bad at all! what interest rate were you at and what are you at now?

I'd have to ask my wife the specifics, but we started with a craptastic rate in '01 when we bought.

[kristen]

Re: refinanced mortgage

cd rates are so aweful right now! our bank of america cd has a rate around what savings account probably used to be. at our next renewal date we are likely switching our cd to ally as they have the best rates weve been able to find

that is why we got him bonds. every penny that was ever given to him is wrapped up in bonds. I'm not about to gamble his money and since he can't touch it til he older....18ish....that is how long it's taking bonds to mature. unless things turn around than they might mature in 14 years. doesn't matter, he won't even know that he has them.

[Mogobs30th]

Re: refinanced mortgage

I have a gold grille in my mouth I invested in. When you buy gold, buy physical gold, like my teeth....

[landj]

Re: refinanced mortgage

I have a gold grille in my mouth I invested in. When you buy gold, buy physical gold, like my teeth....

How much for your left top incisor?

Kristen, you're on to something, but I'd control the little one's finances till they are through college. It seems twisted, but I know I needed the guidance and have seen others that should have had it but didn't. Hell Franklin Roosevelt's mother controlled his purse strings till she died and he was a #&%$$@ president. (note that's a 6 letter explitive, but that's another thread).

[kristen]

Re: refinanced mortgage

thats the plan