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To Refi or not?

By GreaterNYCDude follow GreaterNYCDude   2020 Aug 29, 9:20am 414 views   4 comments         share      

I have a 30 yr fixed @ 3.5% but pay an extra 500 a month to principal.

Balance is about $170,000 right now.

I've flirted with the idea of refinancing a coplue of times but rates haven't quite dipped low enough to make it wothwhile. Best I've seen is just under 3% for a 30 yr fixed, no fees (so they say).

In the end I'd simply rather not fecker with it for a half of a percent. Fifteen year may have merit though. Currently bankrate is showing 2.625% for a 15 year fixed (again no fees)

Any thoghts?
1   RWSGFY   2020 Aug 29, 9:25am  

There are online calculators out there which help to figure out the time it takes to get any advantage from refi. I am in the same boat with 3.5% 30yr mortgage (but higher balance left) and I haven't found anything worth the hassle and cost of refi.
2   Ceffer   2020 Aug 29, 9:35am  

Want to go from a free loan to free-er loan? Gollee, everybody today is so interest rate spoiled. I became debt free just in time for free money. Go figure.
3   socal2   2020 Aug 29, 9:36am  

We are refinancing this week. We currently have a 30 yr fixed at 3.75% (original loan was 4.25%) and are getting another 30 year at 2.62% with about $10K to pay off credit cards.

We are 10 years into our current 30 year mortgage, so we will pay extra with the new loan to keep a 20 year schedule and still save $200 a month.

Not a ton of savings since we will be paying extra, but gives us more security and the option to pay much less if we have unexpected expenses in the coming years.

We plan on staying in this house at least another 20 years God willing.
4   WookieMan   2020 Aug 29, 9:43am  

Quick tip for refi's. Don't do it drunk on St. Patricks day. lol. My wife was plastered and the chick from the title company thought I had coerced her into signing the documents. She couldn't sign her own signature the same way twice. It was awkward. Whatever though, the deal got done.

If you're disciplined, paying the $500 extra a month is probably best. On $170k loan, the payment difference doesn't change that much. 15 years will be more monthly with a lower rate, but you're kind fo already doing that with the extra $500. Unless you need cash with a refi, I don't touch them unless I'm getting 20% plus lower monthly payment. I'd stick with what you're doing. They call it no fee, but you're tacking on $2-3k to the loan ever time. It will take a year or two to pay that off and you've got a higher payment with a 15 years. Always, always go with the lower payment. As low as possible if shit hits the fan. You can always pay more, but you can't pay what you can't afford.

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