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BeachGal
LIF Adult
Member since 2/10 2827 total posts
Name:
J
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Would you Refi if.......
you were only going to save $180/month?
Thanks!
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Posted 11/15/11 9:02 PM  |
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Prudential Douglas Elliman Real Estate
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LJSMommy
Love him!
Member since 10/07 3189 total posts
Name:
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Re: Would you Refi if.......
Yup.....over 30 years that's like $64,000!!
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| Posted 11/15/11 9:22 PM |
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BeachGal
LIF Adult
Member since 2/10 2827 total posts
Name:
J
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Re: Would you Refi if.......
Thanks!
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| Posted 11/15/11 10:36 PM |
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Salason
♥
Member since 6/05 9878 total posts
Name:
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Re: Would you Refi if.......
Depends on how much your closing costs will be and how long you plan to stay in your house. You need to calculate the time it will take to recoup those costs.
For example, if you save $180/mo, that's $2,160/yr. If your closing costs are $10k, it would take 4.6yrs to recoup your costs. So if you plan on moving within the next 4-5 yrs, in that example I wouldn't refi. But the lower your closing costs, the shorter your time to recoup those costs so you really need to look at the numbers.
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| Posted 11/16/11 3:30 PM |
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caps612
In love with my little guys!!
Member since 8/10 5108 total posts
Name:
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Re: Would you Refi if.......
Depends on the closing costs and how long you were going to stay in the house. If that was the savings after rolling the closing costs into your new mortgage payment and you were planning to stay in the house for atleast another 2 years... I would absolutely do it!
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| Posted 11/16/11 4:17 PM |
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BeachGal
LIF Adult
Member since 2/10 2827 total posts
Name:
J
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Re: Would you Refi if.......
Posted by caps612
Depends on the closing costs and how long you were going to stay in the house. If that was the savings after rolling the closing costs into your new mortgage payment and you were planning to stay in the house for atleast another 2 years... I would absolutely do it!
Thanks for responding.
This is my forever house and that was the savings after rolling in the closing costs. I am going for it but this is so scary for some reason!
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| Posted 11/16/11 10:29 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Would you Refi if.......
Posted by Salason
Depends on how much your closing costs will be and how long you plan to stay in your house. You need to calculate the time it will take to recoup those costs.
For example, if you save $180/mo, that's $2,160/yr. If your closing costs are $10k, it would take 4.6yrs to recoup your costs. So if you plan on moving within the next 4-5 yrs, in that example I wouldn't refi. But the lower your closing costs, the shorter your time to recoup those costs so you really need to look at the numbers.
You might want to also consider that you now have a lower interst rate so you have more $$ every month going towards your principle, which can increase your equity and decrease that break even point from 4 + years to much less. IF you look at it that way.
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| Posted 11/16/11 11:08 PM |
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caps612
In love with my little guys!!
Member since 8/10 5108 total posts
Name:
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Re: Would you Refi if.......
Posted by BeachGal
Posted by caps612
Depends on the closing costs and how long you were going to stay in the house. If that was the savings after rolling the closing costs into your new mortgage payment and you were planning to stay in the house for atleast another 2 years... I would absolutely do it!
Thanks for responding.
This is my forever house and that was the savings after rolling in the closing costs. I am going for it but this is so scary for some reason!
Don't be scared... once its all done you will be enjoying that lower payment! I would definitely go for it! 
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| Posted 11/17/11 2:45 PM |
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Salason
♥
Member since 6/05 9878 total posts
Name:
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Re: Would you Refi if.......
Posted by Serendipity
Posted by Salason
Depends on how much your closing costs will be and how long you plan to stay in your house. You need to calculate the time it will take to recoup those costs.
For example, if you save $180/mo, that's $2,160/yr. If your closing costs are $10k, it would take 4.6yrs to recoup your costs. So if you plan on moving within the next 4-5 yrs, in that example I wouldn't refi. But the lower your closing costs, the shorter your time to recoup those costs so you really need to look at the numbers.
You might want to also consider that you now have a lower interst rate so you have more $$ every month going towards your principle, which can increase your equity and decrease that break even point from 4 + years to much less. IF you look at it that way.
No you don't. You would if your payment didnt change and only your interest component were changing but your payment is being reduced by that amount. In fact, you amortize slower in the refi because its is being spread over 30yrs once again. Now if you put the savings towards extra principal payments what you're saying might be true but very few people refi and do that.
As far as your building equity comment, you're probably losing more money in home price depreciation than you're gaining paying down your loan balance in this market so I'd definitely not bank on that...
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| Posted 11/17/11 9:40 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Would you Refi if.......
Posted by Salason
Posted by Serendipity
Posted by Salason
Depends on how much your closing costs will be and how long you plan to stay in your house. You need to calculate the time it will take to recoup those costs.
For example, if you save $180/mo, that's $2,160/yr. If your closing costs are $10k, it would take 4.6yrs to recoup your costs. So if you plan on moving within the next 4-5 yrs, in that example I wouldn't refi. But the lower your closing costs, the shorter your time to recoup those costs so you really need to look at the numbers.
You might want to also consider that you now have a lower interst rate so you have more $$ every month going towards your principle, which can increase your equity and decrease that break even point from 4 + years to much less. IF you look at it that way.
As far as your building equity comment, you're probably losing more money in home price depreciation than you're gaining paying down your loan balance in this market so I'd definitely not bank on that...
But what if you pay are paying down your loan balance in a case where maybe you bought along time ago (not in the housing bubble) Wouldn't it be beneficial then. If your house appreciated from your orginal loan? and now you paid down more of your principle. Maybe I am just confused.
Maybe I was given incorrect info bc when we were exploring the refi option (we arent anymore) the broker used the money we were addding to our principle monthly (our payment wasnt changing) as the money to determine our breakeven point.
We were refiancing for a better product not so much to decrease our payments. (maybe thats the reason)
Message edited 11/17/2011 10:43:32 PM.
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| Posted 11/17/11 10:36 PM |
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Salason
♥
Member since 6/05 9878 total posts
Name:
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Re: Would you Refi if.......
Posted by Serendipity
We were refiancing for a better product not so much to decrease our payments. (maybe thats the reason)
Could you have been going from a 30yr to a 15yr? If so, what you were saying about paying down more principal is absolutely true!
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| Posted 11/18/11 2:24 PM |
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Serendipity
Summer!
Member since 4/07 7631 total posts
Name:
PrayingWishingHopingALOT
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Re: Would you Refi if.......
Posted by Salason
Posted by Serendipity
We were refiancing for a better product not so much to decrease our payments. (maybe thats the reason)
Could you have been going from a 30yr to a 15yr? If so, what you were saying about paying down more principal is absolutely true!
Sorry that would have been a helpful piece of info to add! YES
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| Posted 11/18/11 9:21 PM |
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