No cost loans have slightly higher rates But I think at one point I ran through a bunch of spreadsheets and as long as your 30 year refinanced rate was .25% or lower year your previous rates during the first 10 years of the loan, you still came out ahead in total interest paid. On a 15year, I didn’t bother to run the same numbers simply because on a 15year, much more of your principle gets paid down upfront. And my refinances were always when rates were lower by at least .25% and I typically kept the loan between 2-3years.
Times change and financial plans change too. Its kinda of waist that I threw away 2.5%/mortgage but I sort of want to take less risks this year in terms of investments. And part of that I want to stop bleeding $2600/month on something that doesn’t generate income. So I’ll take the 2.5% return paid to myself.
Eliminating the only mortgage on a rental would be ideal too, but that cash flows $300/month after the mortgage, so why bother.
Plus i want to setup myself in case home prices do correct and i do find something interesting either as a primary or rental. I can borrow more now 🙂 as it was explained to me, I was almost.making out on the number of.loans I’d be able.to qualify for. So I wait.
