just refinanced my house -- saved $215K -- worth a look --

[Unregistered2013]

i went from a 30 year fixed at 6.125% to a 15 year fixed at 4.375% --

thankfully, my house appraised well, and i stayed with my originating bank, so the closing fees were small, with an APR of 4.4%.

it was a rather quick process -- i would suggest it to anyone who thinks they can appraise.

here's a shot of my house from last year -- ignore the tractors -- a big reason i didn't want to re-fi is because i was scared i would appraise low with a somewhat eccentric build -- i pulled off a true craftsman bungalow --

-- thankfully, everything came in well.

it's worth a look -- give online mortgage calculators a look -- it's a great time to re-fi --

-- the parallegal at the bank said it's the lowest 15 rate she's seen.

 

[n8wrl]

WOW!

I like the refi news too

Very nice setup - congrats.

 

[schmism]

any meaningful numbers?

$215K is money that was never spent so hard to count that as "saved"

ie i saved $8.5 million by not buying this last month

impressive no?


Instead...whats the difference in monthly payment? paying more per month or less?

 

[Unregistered2013]

??

i would have paid $215K more in interest had i stayed in my 30 year with that rate, so i indeed consider it "saved" --

 

[Unregistered2013]

Instead...whats the difference in monthly payment? paying more per month or less?

paying $300 more a month, shortening the term by 180 months -- !!

 

[DANOCHEESE]

Did the same thing in November. 4.6 Now trying to pay it off even earlier. Debt is bad, unless it is for toys then it is the cost of playing.

 

[bp fick]

By putting $300 more each month on principle, one could accomplish the same savings and turn any 30 year mortgage into a 15 year or less mortgage.

I am going to assume you lowered the interest enough to justify making the change, justifying the fees and costs, etc. Rule of thumb used to be "to reduce by 1 percent, it's worth it" "To reduce by 2% or more, REALLY worth it"
Still usually got to hold that note for 3 or 4 years to recover the re-fi fees, typically.

 

[Unregistered2013]

By putting $300 more each month on principle, one could accomplish the same savings and turn any 30 year mortgage into a 15 year or less mortgage.

I am going to assume you lowered the interest enough to justify making the change, justifying the fees and costs, etc. Rule of thumb used to be "to reduce by 1 percent, it's worth it" "To reduce by 2% or more, REALLY worth it"
Still usually got to hold that note for 3 or 4 years to recover the re-fi fees, typically.

that's simply not true.

look at this prepayment calculator --

Mortgage Prepayment Calculator: Extra Monthly Payments

staying at 6.125% and paying an extra $300 a month on a 30 year, i pay $220K in interest --

-- going to 4.375% on a 15 year -- with $4K extra for the re-fi -- with the $300 extra a month factored in, only $111K interest paid --

that's a difference of $109K.

 

[keegs]

Good move Eric..and nice place.

Someone I work with mentioned he just did the same thing here in Jersey but I think you may have beat his rate by .2%. These rates are indeed historically low.

Man...when we bought in '86 our 30 year fixed rate was 11.7%....and that was after the rates had come down quite a bit...

 

[bhostasa]

We just did our house too. 4.875% fixed for 30 years.

We are sending extra to our mortgage in hopes of paying it off in 10 years. Sure seems like you have A LOT of options when there isn't a monthly housing payment.