[quote=AN]flu, I would say it’s down the toilet. I would say, it would be like renting your home for $9k over 8 months, which is $1130/month. Seems like a pretty cheap rent for a SFR. Do forget that if you refi, your interest payment will be lower by around $150/month from day one as well. After 2 years, that $3600. So, you save $3600 while “flushing down the toilet” $9k. If you consider $9k as flushing down the toilet, then the other side of that equation is she gets to live there for free over 8 months.
You’re right about what I did and am doing. Rates/rebate are not linear. Example would be, a no cost loan on absolute mortgage is 3.375% but if you bump to 3.5%, you get about $3500 back. So, for $24/month more, you get $3500 up front. If rates drop again in a few months, you can refi again and keep that $3500. If you do it 2-3 times a year, that’s over $7k, which more than enough to pay for your property tax, insurance, and part of the interest you “flushed down the toilet”.
So, my answer to ninaprincess is, it depends on what kind of loans you did. If you did it like me and get credit back, then no, if you do 0 point, then yes. If you do a no cost loan, then it depends on how long you plan to keep the place.[/quote]
yeah yeah yeah I know:) I’m not saying it’s a flush flush in reality. For me, it feels like a flush.. Totally irrationale thinking. Maybe if I were to do over, I would get a 30 year. But I’ve gotten use to the 15 year, and like seeing this come off my books earlier…
Whather it’s 15 year or 30 year, I think we all agree.. It’s cheap money these days…So refi away.
I’m deferring refing until I get approval on a the other property I hope to close this year. Then I’ll refi everything. My primary, my rentals…Probably will tap the heloc too, since the rate is 3% and I can beat that…
The point is, I want to drive my today’s cost up so I recognize as close to a $0 gain as possible over the next few years. And meanwhile, I’ll looking at some tax deferred or tax-exempt investments for the money I borrow that hopefully will beat the loan rate.
