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moneymaker.
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August 5, 2011 at 1:51 PM #716494August 5, 2011 at 3:06 PM #715308
svelteParticipantEven if you refi with a no cost loan and lower your payments, you have to calculate in how many extra months you will have to pay those lower payments.
For example, if you are 3 years into a 30 year loan and you refinance at a lower rate to another 30 year loan, you will be making payments for an additional 3 years.
It’s not as nasty if you’ve only had the loan four months, but it is still four extra payments you’d have to make.
Of course, that assumes you are staying the full 30 years also. If you plan on selling your house before the loan is paid off, that’s a different matter entirely. But the last new house we bought 19 years ago, 7 of the 11 homes are still owned by the original owner after 19 years. And I’m pretty sure most of those folks hadn’t intended on staying there that long.
August 5, 2011 at 3:06 PM #715398svelteParticipantEven if you refi with a no cost loan and lower your payments, you have to calculate in how many extra months you will have to pay those lower payments.
For example, if you are 3 years into a 30 year loan and you refinance at a lower rate to another 30 year loan, you will be making payments for an additional 3 years.
It’s not as nasty if you’ve only had the loan four months, but it is still four extra payments you’d have to make.
Of course, that assumes you are staying the full 30 years also. If you plan on selling your house before the loan is paid off, that’s a different matter entirely. But the last new house we bought 19 years ago, 7 of the 11 homes are still owned by the original owner after 19 years. And I’m pretty sure most of those folks hadn’t intended on staying there that long.
August 5, 2011 at 3:06 PM #716001svelteParticipantEven if you refi with a no cost loan and lower your payments, you have to calculate in how many extra months you will have to pay those lower payments.
For example, if you are 3 years into a 30 year loan and you refinance at a lower rate to another 30 year loan, you will be making payments for an additional 3 years.
It’s not as nasty if you’ve only had the loan four months, but it is still four extra payments you’d have to make.
Of course, that assumes you are staying the full 30 years also. If you plan on selling your house before the loan is paid off, that’s a different matter entirely. But the last new house we bought 19 years ago, 7 of the 11 homes are still owned by the original owner after 19 years. And I’m pretty sure most of those folks hadn’t intended on staying there that long.
August 5, 2011 at 3:06 PM #716152svelteParticipantEven if you refi with a no cost loan and lower your payments, you have to calculate in how many extra months you will have to pay those lower payments.
For example, if you are 3 years into a 30 year loan and you refinance at a lower rate to another 30 year loan, you will be making payments for an additional 3 years.
It’s not as nasty if you’ve only had the loan four months, but it is still four extra payments you’d have to make.
Of course, that assumes you are staying the full 30 years also. If you plan on selling your house before the loan is paid off, that’s a different matter entirely. But the last new house we bought 19 years ago, 7 of the 11 homes are still owned by the original owner after 19 years. And I’m pretty sure most of those folks hadn’t intended on staying there that long.
August 5, 2011 at 3:06 PM #716514svelteParticipantEven if you refi with a no cost loan and lower your payments, you have to calculate in how many extra months you will have to pay those lower payments.
For example, if you are 3 years into a 30 year loan and you refinance at a lower rate to another 30 year loan, you will be making payments for an additional 3 years.
It’s not as nasty if you’ve only had the loan four months, but it is still four extra payments you’d have to make.
Of course, that assumes you are staying the full 30 years also. If you plan on selling your house before the loan is paid off, that’s a different matter entirely. But the last new house we bought 19 years ago, 7 of the 11 homes are still owned by the original owner after 19 years. And I’m pretty sure most of those folks hadn’t intended on staying there that long.
August 5, 2011 at 3:35 PM #715318an
ParticipantEven if you keep your loan for 30 years, if you don’t want to pay the whole 30 years, you can 1) continue to pay what you’re paying, which will reduce 30 years down to less than the # years you have left on your current loan or 2) you can pay the new lower payment amount and after the end of your current loan, you can take the $ you saved and pay off the rest of the loan. You can do 1 or 2 and you’ll be paying less interest over the same span of time.
August 5, 2011 at 3:35 PM #715408ParticipantEven if you keep your loan for 30 years, if you don’t want to pay the whole 30 years, you can 1) continue to pay what you’re paying, which will reduce 30 years down to less than the # years you have left on your current loan or 2) you can pay the new lower payment amount and after the end of your current loan, you can take the $ you saved and pay off the rest of the loan. You can do 1 or 2 and you’ll be paying less interest over the same span of time.
August 5, 2011 at 3:35 PM #716011ParticipantEven if you keep your loan for 30 years, if you don’t want to pay the whole 30 years, you can 1) continue to pay what you’re paying, which will reduce 30 years down to less than the # years you have left on your current loan or 2) you can pay the new lower payment amount and after the end of your current loan, you can take the $ you saved and pay off the rest of the loan. You can do 1 or 2 and you’ll be paying less interest over the same span of time.
August 5, 2011 at 3:35 PM #716162ParticipantEven if you keep your loan for 30 years, if you don’t want to pay the whole 30 years, you can 1) continue to pay what you’re paying, which will reduce 30 years down to less than the # years you have left on your current loan or 2) you can pay the new lower payment amount and after the end of your current loan, you can take the $ you saved and pay off the rest of the loan. You can do 1 or 2 and you’ll be paying less interest over the same span of time.
August 5, 2011 at 3:35 PM #716523ParticipantEven if you keep your loan for 30 years, if you don’t want to pay the whole 30 years, you can 1) continue to pay what you’re paying, which will reduce 30 years down to less than the # years you have left on your current loan or 2) you can pay the new lower payment amount and after the end of your current loan, you can take the $ you saved and pay off the rest of the loan. You can do 1 or 2 and you’ll be paying less interest over the same span of time.
August 5, 2011 at 4:00 PM #715332AK
ParticipantRefinancing usually means one month with no payment. Some financial pundits suggest putting that month’s payment toward principal.
In a high-rate environment … say, 8 percent … that single extra principal payment will pay off your mortgage 11 months early. The benefits aren’t quite as clear at 4 percent — the extra payment knocks three months off the term of your mortgage.
August 5, 2011 at 4:00 PM #715423ParticipantRefinancing usually means one month with no payment. Some financial pundits suggest putting that month’s payment toward principal.
In a high-rate environment … say, 8 percent … that single extra principal payment will pay off your mortgage 11 months early. The benefits aren’t quite as clear at 4 percent — the extra payment knocks three months off the term of your mortgage.
August 5, 2011 at 4:00 PM #716026ParticipantRefinancing usually means one month with no payment. Some financial pundits suggest putting that month’s payment toward principal.
In a high-rate environment … say, 8 percent … that single extra principal payment will pay off your mortgage 11 months early. The benefits aren’t quite as clear at 4 percent — the extra payment knocks three months off the term of your mortgage.
August 5, 2011 at 4:00 PM #716177ParticipantRefinancing usually means one month with no payment. Some financial pundits suggest putting that month’s payment toward principal.
In a high-rate environment … say, 8 percent … that single extra principal payment will pay off your mortgage 11 months early. The benefits aren’t quite as clear at 4 percent — the extra payment knocks three months off the term of your mortgage.
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