Refinanced 4 months ago at 4.2%, now same broker said I could refiance again?

[(former)FormerSanDiegan]

The owner already refinanced 4 months ago making it non-recourse. Whether they refinance again has no bearing.

Therefore the point that lifeizfunhuh made is a moot point in this case.

[scaredyclassic]

What if the house is totalled in an earthquake without insurance. Can the bank sue for the difference between land value and mortgage?

[(former)FormerSanDiegan]

[quote=walterwhite]What if the house is totalled in an earthquake without insurance. Can the bank sue for the difference between land value and mortgage?[/quote]

What if it IS covered by insurance and is wiped out by an act of war ?

[(former)FormerSanDiegan]

… or aliens ?

[The-Shoveler]

[quote=FormerSanDiegan]… or aliens ?[/quote]

Ever heard of the 1942 Battle of L.A. ?

Just saying

How about friendly fire even?

[jimmyle]

Now the broker is offering 3.875% with only $200 fee. The difference is $85 a month. But now my mortgage is 4 months longer.

[UCGal]

[quote=jimmyle]Now the broker is offering 3.875% with only $200 fee. The difference is $85 a month. But now my mortgage is 4 months longer.[/quote]
What if you were to make an extra principal payment of $85/month. How much shorter would the mortgage be.

(That’s what we did when we refi’d a few years ago – kept paying the same payment, with the extra going towards principal. We liked seeing the balance shrink so much we started throwing even more money at it. It’s good to be able to imagine a paid for house.)

[jimmyle]

Thanks UCGal,

Your hint helped me alot.

So I have 356 payments left with 4.25% rate (not 4.2% like I thought). Using the same monthly payment and new 3.875% rate, the number of payments went down to 331. Here I am ignoring the $200 fee. I think I will go ahead with this.

[quote=UCGal][quote=jimmyle]Now the broker is offering 3.875% with only $200 fee. The difference is $85 a month. But now my mortgage is 4 months longer.[/quote]
What if you were to make an extra principal payment of $85/month. How much shorter would the mortgage be.

(That’s what we did when we refi’d a few years ago – kept paying the same payment, with the extra going towards principal. We liked seeing the balance shrink so much we started throwing even more money at it. It’s good to be able to imagine a paid for house.)[/quote]

[Anonymous]

If someone was willing to loan me money for 30 years at a rate less than 4%, I wouldn’t pay them back any faster than I had to.

[an]

[quote=pri_dk]If someone was willing to loan me money for 30 years at a rate less than 4%, I wouldn’t pay them back any faster than I had to.[/quote]
I totally agree.

[an]

delete

[NotCranky]

[quote=AN][quote=pri_dk]If someone was willing to loan me money for 30 years at a rate less than 4%, I wouldn’t pay them back any faster than I had to.[/quote]
I totally agree.[/quote]

40 year mortgages are is pretty close to 4%.

[jimmyle]

Generally true but the return from CDs and stock markets have been terrible lately.

[quote=pri_dk]If someone was willing to loan me money for 30 years at a rate less than 4%, I wouldn’t pay them back any faster than I had to.[/quote]

[an]

[quote=Jacarandoso][quote=AN][quote=pri_dk]If someone was willing to loan me money for 30 years at a rate less than 4%, I wouldn’t pay them back any faster than I had to.[/quote]
I totally agree.[/quote]

40 year mortgages are is pretty close to 4%.[/quote]
According to aimloan, $0 cost 40 years is ~5%, 30 years is ~$4.25%, and 15 years is ~3.5%. The decrease in monthly payment between a 30 and 40 years is not that big though, so it become not worth it to get the higher cost 40 years loan. For a max out conforming loan of $417k, you’re looking at a decrease of only ~$50/month vs ~$800/month between a 15 and 30 years.

[an]

[quote=jimmyle]Generally true but the return from CDs and stock markets have been terrible lately.

[quote=pri_dk]If someone was willing to loan me money for 30 years at a rate less than 4%, I wouldn’t pay them back any faster than I had to.[/quote][/quote]
True, but do you expect it to stay terrible over the next 30 years?

[Author]

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