Detroit wrote: ↑Fri Apr 26, 2019 6:50 am
All B&M banks blow, pick the one with the most geographic locations. BoA or Chase IMO.
I keep a BofA CC so I can use services like notaries free when needed, but fuck BofA (they’re even based in my town but still fuck ‘em ).
I use NBKC, it’s great. All atm fees are reimbursed and checking still pays interest of like 1%. Pair that with a high yield online savings and you’re good.
Bringing this back to ask the question.....
Since the fed just decided to lower interest rates a lil bit, anyone know offhand if it's worth it to look into refinancing their house? I haven't dug into it at all yet, but I just was wondering if anyone actually knows anything about it and what it's going to affect. Currently I'm at 4.25%, and it was about as low as I could get 5 years ago when I purchased. I read (a few years ago) that it's not really worth it unless you can get it down nearly an entire percentage point.
Acid666 wrote: ↑Thu Aug 01, 2019 11:53 am
Bringing this back to ask the question.....
Since the fed just decided to lower interest rates a lil bit, anyone know offhand if it's worth it to look into refinancing their house? I haven't dug into it at all yet, but I just was wondering if anyone actually knows anything about it and what it's going to affect. Currently I'm at 4.25%, and it was about as low as I could get 5 years ago when I purchased. I read (a few years ago) that it's not really worth it unless you can get it down nearly an entire percentage point.
Any thoughts?
I always heard that its costs about a point to refi....so unless the rates go down by 1.25% or better then it's just a wash. Been a long time since I looked into it though.
Acid666 wrote: ↑Thu Aug 01, 2019 11:53 am
Bringing this back to ask the question.....
Since the fed just decided to lower interest rates a lil bit, anyone know offhand if it's worth it to look into refinancing their house? I haven't dug into it at all yet, but I just was wondering if anyone actually knows anything about it and what it's going to affect. Currently I'm at 4.25%, and it was about as low as I could get 5 years ago when I purchased. I read (a few years ago) that it's not really worth it unless you can get it down nearly an entire percentage point.
Any thoughts?
I always heard that its costs about a point to refi....so unless the rates go down by 1.25% or better then it's just a wash. Been a long time since I looked into it though.
You will lose out on the fees as well. Plus reseting the clock. I'd only refi if you could drop 1.5% OR are switching to a 15 year AT a lower rate.
I always heard that its costs about a point to refi....so unless the rates go down by 1.25% or better then it's just a wash. Been a long time since I looked into it though.
You will lose out on the fees as well. Plus reseting the clock. I'd only refi if you could drop 1.5% OR are switching to a 15 year AT a lower rate.
Yeah it doesn't look like it's really worth it for me. I did the math on swapping to a 15 year and while overall it would be cheaper, I'm better off just paying that extra into a 30 year loan and being able to have the option to not have to pay so much for the 15 year loan that I'm locked into.
You will lose out on the fees as well. Plus reseting the clock. I'd only refi if you could drop 1.5% OR are switching to a 15 year AT a lower rate.
Yeah it doesn't look like it's really worth it for me. I did the math on swapping to a 15 year and while overall it would be cheaper, I'm better off just paying that extra into a 30 year loan and being able to have the option to not have to pay so much for the 15 year loan that I'm locked into.
You will lose out on the fees as well. Plus reseting the clock. I'd only refi if you could drop 1.5% OR are switching to a 15 year AT a lower rate.
Yeah it doesn't look like it's really worth it for me. I did the math on swapping to a 15 year and while overall it would be cheaper, I'm better off just paying that extra into a 30 year loan and being able to have the option to not have to pay so much for the 15 year loan that I'm locked into.
You need to use a calculator on how much interest you will save by shortening to a 15 year loan. It will be significant even at a similar interest rate. Todays lower rate will be icing on the cake.
Round numbers (with amortization)
300,000 x 4.0%
for 30 Years = $215,609 interest paid over the life of the loan
For 15 Years = $99,431 interest paid over the life of the loan
$116,000 saved taking a 15 year versus 30 year mortgage at the same rate.
PS We all say that we will just throw money at the mortgage when we can....but most of us never do.
You will lose out on the fees as well. Plus reseting the clock. I'd only refi if you could drop 1.5% OR are switching to a 15 year AT a lower rate.
Yeah it doesn't look like it's really worth it for me. I did the math on swapping to a 15 year and while overall it would be cheaper, I'm better off just paying that extra into a 30 year loan and being able to have the option to not have to pay so much for the 15 year loan that I'm locked into.
That's the typical case unless you are looking at 3+ points. This is just the first cut, we are on our way back to zero. When prime rates get to zero a 15 year might only be 2%, and at that point you could switch and roll in fees and end up with nearly the same note.
Yeah it doesn't look like it's really worth it for me. I did the math on swapping to a 15 year and while overall it would be cheaper, I'm better off just paying that extra into a 30 year loan and being able to have the option to not have to pay so much for the 15 year loan that I'm locked into.
That's the typical case unless you are looking at 3+ points. This is just the first cut, we are on our way back to zero. When prime rates get to zero a 15 year might only be 2%, and at that point you could switch and roll in fees and end up with nearly the same note.
Tarspin wrote: ↑Thu Aug 01, 2019 5:07 pm
I always go for the longest term rate at the lowest percent interest and over pay as hard as possible.
This is the way to do it IMO.
Get a 30, pay like it's a 15. If happens, you can easily drop back down to the 30 payment and be fine.
We've been overpaying our mortgage every month, it's amazing how little it takes to make a big difference in total interest...especially early in the mortgage.
Desertbreh wrote: ↑Tue Oct 10, 2017 6:40 pm
My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
Tarspin wrote: ↑Thu Aug 01, 2019 5:07 pm
I always go for the longest term rate at the lowest percent interest and over pay as hard as possible.
This is the way to do it IMO.
Get a 30, pay like it's a 15. If happens, you can easily drop back down to the 30 payment and be fine.
We've been overpaying our mortgage every month, it's amazing how little it takes to make a big difference in total interest...especially early in the mortgage.
I don’t remember if this math ended up being accurate or not, but iirc if you make a double payment on your first payment of a 30 year mortgage it shaves almost two years of payments off because of all the interest saved over time after that.
Two years is probably an exaggeration, but I think it’s still a significant savings over time.
Edit: lol just checked an amortization schedule and it shaved off like 4 months. Not the two years I’d heard however long ago, but still to see the savings.
Detroit wrote: ↑Fri Aug 02, 2019 8:37 am
This is the way to do it IMO.
Get a 30, pay like it's a 15. If happens, you can easily drop back down to the 30 payment and be fine.
We've been overpaying our mortgage every month, it's amazing how little it takes to make a big difference in total interest...especially early in the mortgage.
I don’t remember if this math ended up being accurate or not, but iirc if you make a double payment on your first payment of a 30 year mortgage it shaves almost two years of payments off because of all the interest saved over time after that.
Two years is probably an exaggeration, but I think it’s still a significant savings over time.
Edit: lol just checked an amortization schedule and it shaved off like 4 months. Not the two years I’d heard however long ago, but still to see the savings.
Interest rates used to be a LOT higher, try the same calculation with the old near 20% rates.
SAWCE wrote:
I don’t remember if this math ended up being accurate or not, but iirc if you make a double payment on your first payment of a 30 year mortgage it shaves almost two years of payments off because of all the interest saved over time after that.
Two years is probably an exaggeration, but I think it’s still a significant savings over time.
Edit: lol just checked an amortization schedule and it shaved off like 4 months. Not the two years I’d heard however long ago, but still to see the savings.
Interest rates used to be a LOT higher, try the same calculation with the old near 20% rates.
True.. though to be fair it was probably 10 or so years ago that I’d heard that. But maybe that person got their info from way back then.
As rates fell last time around (up here in 2010-2013 at least), I paid even more aggressively. Just keep dumping money into the mortgage, it's the best thing anyone can do.
I'm still selling my house, had two solid interested potential buyers but they are starting to dwindle. We are dropping 20k from the price later this afternoon to stir up the buying pool. Still have some room for negotiations which will happen.
Detroit wrote: ↑Fri Aug 02, 2019 8:37 am
This is the way to do it IMO.
Get a 30, pay like it's a 15. If happens, you can easily drop back down to the 30 payment and be fine.
We've been overpaying our mortgage every month, it's amazing how little it takes to make a big difference in total interest...especially early in the mortgage.
I don’t remember if this math ended up being accurate or not, but iirc if you make a double payment on your first payment of a 30 year mortgage it shaves almost two years of payments off because of all the interest saved over time after that.
Two years is probably an exaggeration, but I think it’s still a significant savings over time.
Edit: lol just checked an amortization schedule and it shaved off like 4 months. Not the two years I’d heard however long ago, but still to see the savings.
We've been paying an extra $100 toward principle/mo and are on track to make 1 extra payments per year. We've paid half the one extra so far, and after 10 months, we've already shaved 6 mos and $7k of interest over the life of the mortgage. Pretty amazing.
We setup biweekly payments...so a payment every other week. It lines up with pay schedule, so it's easy to manage, and ends up with the extra annual payment automatically. Works really well, and should cut our loan down by ~5 years or so. Hope to increase the additional to principle soon to really cut the life and interest down.
Desertbreh wrote: ↑Tue Oct 10, 2017 6:40 pm
My guess would be that Chris took some time off because he has read the dialogue on this page 1,345 times and decided to spend some of his free time doing something besides beating a horse to death.
I don’t remember if this math ended up being accurate or not, but iirc if you make a double payment on your first payment of a 30 year mortgage it shaves almost two years of payments off because of all the interest saved over time after that.
Two years is probably an exaggeration, but I think it’s still a significant savings over time.
Edit: lol just checked an amortization schedule and it shaved off like 4 months. Not the two years I’d heard however long ago, but still to see the savings.
We've been paying an extra $100 toward principle/mo and are on track to make 1 extra payments per year. We've paid half the one extra so far, and after 10 months, we've already shaved 6 mos and $7k of interest over the life of the mortgage. Pretty amazing.
We setup biweekly payments...so a payment every other week. It lines up with pay schedule, so it's easy to manage, and ends up with the extra annual payment automatically. Works really well, and should cut our loan down by ~5 years or so. Hope to increase the additional to principle soon to really cut the life and interest down.