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refinance: yea or nay?


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#1 mongo_jones

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Posted 07 March 2020 - 05:05 PM

we are four years into a 30 year mortgage at 3.875%. can refinance to 15 at 2.87%. closing costs are not onerous. monthly payments will go up a couple of hundred but this will not kill us. no-brainer, right?


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#2 hollywood

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Posted 07 March 2020 - 05:49 PM

+Sounds good.  Which finance entity?


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#3 Steve R.

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Posted 07 March 2020 - 05:52 PM

As the resident non-finance or real estate person here, I say do it & then pay down the mortgage whenever you have any "extra" $$ that you can spare.  There's nothing like "no mortgage left".


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#4 Anthony Bonner

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Posted 07 March 2020 - 06:34 PM

I think you should give it a week or two. Spreads over treasuries have actually blown out as mortgage pricing has lagged the ten year.

(Tho 2.87 is pretty nuts)

This decision broadly speaking is just math.

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#5 Orik

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Posted 07 March 2020 - 06:51 PM

Right,

 

The scenarios where this is not a good move are (1) hyperinflation starting and (2) home prices tanking, about 15 years from now. 

 

But otherwise what AB said. 

 

p.s. I think this week was the first time a trade I made was mentioned on ZeroHedge. 


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#6 mongo_jones

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Posted 07 March 2020 - 07:03 PM

why can't you people speak in terms non-finance people can understand?

 

the appeal of doing this is that the mortgage would end right when i hit 65 (if i make it there). being able to bank more money for a few years heading into retirement is attractive. and we can comfortably cover the few extra hundred a month in mortgage payments..


my annoying opinions: whisky, food and occasional cultural commentary

 

current restaurant review: house of curry (sri lankan in rosemount, mn)

 

current whisky review: glen ord 28

 

current recipe: white bean curry with green peppers

 

 

facts are meaningless. you could use facts to prove anything that's even remotely true!
~homer simpson


 


#7 Orik

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Posted 07 March 2020 - 07:15 PM

The appeal is that you end up paying a lot less in total for the same asset. This is almost certainly a good thing with only a couple of outliers. 

 

AB is suggesting things may get even better for you, which is likely true but maybe not by a lot.


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#8 joethefoodie

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Posted 07 March 2020 - 08:31 PM

As the other non finance or real estate person here, another assumption is that you are not planning to move, correct? Like to say, a bigger house or something.



#9 hollywood

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Posted 07 March 2020 - 10:36 PM

Currently, Money magazine and WSJ have pieces on this issue.  One thought concerns closing costs and whether to pay them outright rather than finance them over the years.


Then that happened.

 

I traveled to Tijuana to smack the federali

Who packing avocado toast like Mario Batali--Black Thought


#10 Anthony Bonner

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Posted 09 March 2020 - 11:56 AM

Your refi is getting cheaper by the second. And and and now you can fill your f250 at a 25% discount.

Just do yourself a favor and don't open your retirement account statements this month.

#howsyour401k #trump2020

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#11 mongo_jones

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Posted 10 March 2020 - 11:33 PM

i waited and rates went up today. bonner and orik owe me money.


my annoying opinions: whisky, food and occasional cultural commentary

 

current restaurant review: house of curry (sri lankan in rosemount, mn)

 

current whisky review: glen ord 28

 

current recipe: white bean curry with green peppers

 

 

facts are meaningless. you could use facts to prove anything that's even remotely true!
~homer simpson


 


#12 Steve R.

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Posted 10 March 2020 - 11:43 PM

Who are you gonna listen to, experts like them or folks like me who have a hunch. Oh wait.

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#13 Tubbs

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Posted 11 March 2020 - 01:17 AM

Now of course a combination of overpaying a bit plus my area getting slammed by salt elimination plus an appraiser who can't count the number of bed and bathrooms properly means I have a refi rate locked in and approved but am now way above 75 LTV....decisions decisions.

#14 hollywood

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Posted 13 March 2020 - 06:21 PM

So if the Fed cuts interest rates to zero....


Then that happened.

 

I traveled to Tijuana to smack the federali

Who packing avocado toast like Mario Batali--Black Thought