[quote=HLS]FLU..
You said that ‘total loan balance is 506,480″
Do you mean total payments over life of loan ?
Having a 15yr payment obligation may affect your ability to qualify for future loans (vs.a 30yr payment)
Many people have caused themselves hardship by getting 15yr loans in the past.
15yr payments vs 30yr payments are about ~50% more.
It doesn’t always make sense though.
** In the BIG PICTURE the value of time/money is not factored into the savings.
Saving $100 a month/$1200 yr/$18,000 over 15yrs
is not the same as paying the $100 more towards
your principal balance every month.
**THE TRUE SAVINGS of any refi is to pay the same payment that you are making now but at a lower interest rate, your compounded savings will be much greater, If you can afford it.[/quote]
Sorry, to clarify my original loan (7months into it would have been $506480)… My remaining loan balance on the 15year would be $498041 (principal $389290)
My point of saving on my monthly payment is mainly to take that payment and either apply it to this principal or part of a loan on a rental…
So in this case of absolutely no cash out (just “cash out” $3k to pay for the loan cost, the extra $148/month savings in monthly payment, I would immediately add that as principal payment on the existing loan OR apply the extra $148/month to a higher cost second TBD loan). Also, even without doing this, I think I would end up paying $22516 less on this new loan over the next 15 years, versus if I were to complete my existing 3.375% loan. (Column E in spreedsheet). Am I wrong?
I’m contemplating cash out. But I would not want to take cash out unless I kept the same the total new loan balance to be <= the remaining outstanding loan balance on my current loan.
On my spreedsheet, that would be a cash out somewhere between column L18 and L19
BTW: LTV is < 50%
One question I have. Does have a 30 year with a lower monthly increase my chances of qualifying for a second loan on say a rental, or no difference?
Sheldon, are you still doing loans? 🙂
