Tales of a refinance, part 2….

[ucodegen]

[quote flu]The second loan technically won’t be at $417k, since approximately 4 payments already were made, so principal paid will be approximately $7k , and interest payments of $5200 thrown in the trash. [/quote]
Remember that you are effectively a ‘home renter’ until paid off. Considering that ($7k/$12.2k) = 57.4% of payments went to paying off principal, that is not too bad. Usually on the first few years of a mortgage, the payoff of principal is less than 30% of the monthly payment.

[quote flu]Can someone check my math? (I suck at basic math…I can only do Fourier Transforms and FFT’s….Seriously)[/quote]
I’m at my Engineering job.. so my brain doesn’t amortize right now. I have the formulas and a financial calc at home. If no-one answers, I’ll run the numbers from home.

[an]

Here’s the numbers:
Your original loan of $417k at 3.75% will cost you a total of $128,853.17 in interest over 15 years. Since you said you paid off $7k in principal, then that would mean you paid off $5,180.01 in interest. So if you continue on this loan, you have to pay the remaining $123673.16 in interest.

If you refi today with the remaining balance of $410,049.94, your total interest over the next 15 years would be $108,582.78. That’s a saving of $15090.38 over the next 15 years in interest. So, lets say your prior loan cost you $6k, then the saving on interest – prior loan cost is $9090.38. This is not counting the monthly payment saving.

Prior loan’s monthly payment is $3,032.52 and the new loan’s monthly payment is $2,881.29. That’s a saving of $151.23/month or $27221.40 over 15 years. Add this saving with the $9090.38 in saving on interest and your total saving would be $36311.78. However, the down side would be you paying 4 more months.

I didn’t count the ~$5k you already paid in interest because you already paid for that. My calculation is strictly on whether you should refi right now if you can get 3.25% at no cost. For a saving of ~$36k, I think you should totally do it. However, I’ve missed the fact that the last 4 months without mortgage will offset you $11525.16. So your real saving is ~$25k, not $36k. Still worth it I think.

[an]

Here’s the numbers:
Your original loan of $417k at 3.75% will cost you a total of $128,853.17 in interest over 15 years. Since you said you paid off $7k in principal, then that would mean you paid off $5,180.01 in interest. So if you continue on this loan, you have to pay the remaining $123673.16 in interest.

If you refi today with the remaining balance of $410,049.94, your total interest over the next 15 years would be $108,582.78. That’s a saving of $15090.38 over the next 15 years in interest. So, lets say your prior loan cost you $6k, then the saving on interest – prior loan cost is $9090.38. This is not counting the monthly payment saving.

Prior loan’s monthly payment is $3,032.52 and the new loan’s monthly payment is $2,881.29. That’s a saving of $151.23/month or $27221.40 over 15 years. Add this saving with the $9090.38 in saving on interest and your total saving would be $36311.78. However, the down side would be you paying 4 more months.

I didn’t count the ~$5k you already paid in interest because you already paid for that. My calculation is strictly on whether you should refi right now if you can get 3.25% at no cost. For a saving of ~$36k, I think you should totally do it. However, I’ve missed the fact that the last 4 months without mortgage will offset you $11525.16. So your real saving is ~$25k, not $36k. Still worth it I think.

[an]

Here’s the numbers:
Your original loan of $417k at 3.75% will cost you a total of $128,853.17 in interest over 15 years. Since you said you paid off $7k in principal, then that would mean you paid off $5,180.01 in interest. So if you continue on this loan, you have to pay the remaining $123673.16 in interest.

If you refi today with the remaining balance of $410,049.94, your total interest over the next 15 years would be $108,582.78. That’s a saving of $15090.38 over the next 15 years in interest. So, lets say your prior loan cost you $6k, then the saving on interest – prior loan cost is $9090.38. This is not counting the monthly payment saving.

Prior loan’s monthly payment is $3,032.52 and the new loan’s monthly payment is $2,881.29. That’s a saving of $151.23/month or $27221.40 over 15 years. Add this saving with the $9090.38 in saving on interest and your total saving would be $36311.78. However, the down side would be you paying 4 more months.

I didn’t count the ~$5k you already paid in interest because you already paid for that. My calculation is strictly on whether you should refi right now if you can get 3.25% at no cost. For a saving of ~$36k, I think you should totally do it. However, I’ve missed the fact that the last 4 months without mortgage will offset you $11525.16. So your real saving is ~$25k, not $36k. Still worth it I think.

[an]

Here’s the numbers:
Your original loan of $417k at 3.75% will cost you a total of $128,853.17 in interest over 15 years. Since you said you paid off $7k in principal, then that would mean you paid off $5,180.01 in interest. So if you continue on this loan, you have to pay the remaining $123673.16 in interest.

If you refi today with the remaining balance of $410,049.94, your total interest over the next 15 years would be $108,582.78. That’s a saving of $15090.38 over the next 15 years in interest. So, lets say your prior loan cost you $6k, then the saving on interest – prior loan cost is $9090.38. This is not counting the monthly payment saving.

Prior loan’s monthly payment is $3,032.52 and the new loan’s monthly payment is $2,881.29. That’s a saving of $151.23/month or $27221.40 over 15 years. Add this saving with the $9090.38 in saving on interest and your total saving would be $36311.78. However, the down side would be you paying 4 more months.

I didn’t count the ~$5k you already paid in interest because you already paid for that. My calculation is strictly on whether you should refi right now if you can get 3.25% at no cost. For a saving of ~$36k, I think you should totally do it. However, I’ve missed the fact that the last 4 months without mortgage will offset you $11525.16. So your real saving is ~$25k, not $36k. Still worth it I think.

[an]

Here’s the numbers:
Your original loan of $417k at 3.75% will cost you a total of $128,853.17 in interest over 15 years. Since you said you paid off $7k in principal, then that would mean you paid off $5,180.01 in interest. So if you continue on this loan, you have to pay the remaining $123673.16 in interest.

If you refi today with the remaining balance of $410,049.94, your total interest over the next 15 years would be $108,582.78. That’s a saving of $15090.38 over the next 15 years in interest. So, lets say your prior loan cost you $6k, then the saving on interest – prior loan cost is $9090.38. This is not counting the monthly payment saving.

Prior loan’s monthly payment is $3,032.52 and the new loan’s monthly payment is $2,881.29. That’s a saving of $151.23/month or $27221.40 over 15 years. Add this saving with the $9090.38 in saving on interest and your total saving would be $36311.78. However, the down side would be you paying 4 more months.

I didn’t count the ~$5k you already paid in interest because you already paid for that. My calculation is strictly on whether you should refi right now if you can get 3.25% at no cost. For a saving of ~$36k, I think you should totally do it. However, I’ve missed the fact that the last 4 months without mortgage will offset you $11525.16. So your real saving is ~$25k, not $36k. Still worth it I think.

[Coronita]

[quote=ucodegen]Damn, now see what you did.. I got curious and had to run the numbers. What I got:

Principal Rate Monthly Total
$417,000 3.75% $3032.52 $545853.17
$410,000 3.75% $2981.61 $536690.16
$410,000 3.25% $2880.94 $518569.55


On the first loan, you already paid $12,130.08 of the total leaving $533,723.09 of remaining payments. The new loan if started at this point would mean $518569.55 of total pending payments, and $151.58 less on the monthly.
Total diff on the total paid is $15,153.54.

This does not include any PMI, service charge, bribe to the local constabulary.. etc.[/quote]

I knew I goofed since I was comparing the total new payment to the total original amount. Duh… (dumbass)….
Thanks.

[Coronita]

[quote=ucodegen]Damn, now see what you did.. I got curious and had to run the numbers. What I got:

Principal Rate Monthly Total
$417,000 3.75% $3032.52 $545853.17
$410,000 3.75% $2981.61 $536690.16
$410,000 3.25% $2880.94 $518569.55


On the first loan, you already paid $12,130.08 of the total leaving $533,723.09 of remaining payments. The new loan if started at this point would mean $518569.55 of total pending payments, and $151.58 less on the monthly.
Total diff on the total paid is $15,153.54.

This does not include any PMI, service charge, bribe to the local constabulary.. etc.[/quote]

I knew I goofed since I was comparing the total new payment to the total original amount. Duh… (dumbass)….
Thanks.

[Coronita]

[quote=ucodegen]Damn, now see what you did.. I got curious and had to run the numbers. What I got:

Principal Rate Monthly Total
$417,000 3.75% $3032.52 $545853.17
$410,000 3.75% $2981.61 $536690.16
$410,000 3.25% $2880.94 $518569.55


On the first loan, you already paid $12,130.08 of the total leaving $533,723.09 of remaining payments. The new loan if started at this point would mean $518569.55 of total pending payments, and $151.58 less on the monthly.
Total diff on the total paid is $15,153.54.

This does not include any PMI, service charge, bribe to the local constabulary.. etc.[/quote]

I knew I goofed since I was comparing the total new payment to the total original amount. Duh… (dumbass)….
Thanks.

[Coronita]

[quote=ucodegen]Damn, now see what you did.. I got curious and had to run the numbers. What I got:

Principal Rate Monthly Total
$417,000 3.75% $3032.52 $545853.17
$410,000 3.75% $2981.61 $536690.16
$410,000 3.25% $2880.94 $518569.55


On the first loan, you already paid $12,130.08 of the total leaving $533,723.09 of remaining payments. The new loan if started at this point would mean $518569.55 of total pending payments, and $151.58 less on the monthly.
Total diff on the total paid is $15,153.54.

This does not include any PMI, service charge, bribe to the local constabulary.. etc.[/quote]

I knew I goofed since I was comparing the total new payment to the total original amount. Duh… (dumbass)….
Thanks.

[Coronita]

[quote=ucodegen]Damn, now see what you did.. I got curious and had to run the numbers. What I got:

Principal Rate Monthly Total
$417,000 3.75% $3032.52 $545853.17
$410,000 3.75% $2981.61 $536690.16
$410,000 3.25% $2880.94 $518569.55


On the first loan, you already paid $12,130.08 of the total leaving $533,723.09 of remaining payments. The new loan if started at this point would mean $518569.55 of total pending payments, and $151.58 less on the monthly.
Total diff on the total paid is $15,153.54.

This does not include any PMI, service charge, bribe to the local constabulary.. etc.[/quote]

I knew I goofed since I was comparing the total new payment to the total original amount. Duh… (dumbass)….
Thanks.

[Coronita]

[quote=AN]Here’s the numbers:
Your original loan of $417k at 3.75% will cost you a total of $128,853.17 in interest over 15 years. Since you said you paid off $7k in principal, then that would mean you paid off $5,180.01 in interest. So if you continue on this loan, you have to pay the remaining $123673.16 in interest.

If you refi today with the remaining balance of $410,049.94, your total interest over the next 15 years would be $108,582.78. That’s a saving of $15090.38 over the next 15 years in interest. So, lets say your prior loan cost you $6k, then the saving on interest – prior loan cost is $9090.38. This is not counting the monthly payment saving.

Prior loan’s monthly payment is $3,032.52 and the new loan’s monthly payment is $2,881.29. That’s a saving of $151.23/month or $27221.40 over 15 years. Add this saving with the $9090.38 in saving on interest and your total saving would be $36311.78. However, the down side would be you paying 4 more months.

I didn’t count the ~$5k you already paid in interest because you already paid for that. My calculation is strictly on whether you should refi right now if you can get 3.25% at no cost. For a saving of ~$36k, I think you should totally do it. However, I’ve missed the fact that the last 4 months without mortgage will offset you $11525.16. So your real saving is ~$25k, not $36k. Still worth it I think.[/quote]

I got it from ucodegen too. Yes, thanks I am a dumbass (compared to original loan amount). Actually, it also doesn’t include the cost that I paid on the first loan too.

[Coronita]

[quote=AN]Here’s the numbers:
Your original loan of $417k at 3.75% will cost you a total of $128,853.17 in interest over 15 years. Since you said you paid off $7k in principal, then that would mean you paid off $5,180.01 in interest. So if you continue on this loan, you have to pay the remaining $123673.16 in interest.

If you refi today with the remaining balance of $410,049.94, your total interest over the next 15 years would be $108,582.78. That’s a saving of $15090.38 over the next 15 years in interest. So, lets say your prior loan cost you $6k, then the saving on interest – prior loan cost is $9090.38. This is not counting the monthly payment saving.

Prior loan’s monthly payment is $3,032.52 and the new loan’s monthly payment is $2,881.29. That’s a saving of $151.23/month or $27221.40 over 15 years. Add this saving with the $9090.38 in saving on interest and your total saving would be $36311.78. However, the down side would be you paying 4 more months.

I didn’t count the ~$5k you already paid in interest because you already paid for that. My calculation is strictly on whether you should refi right now if you can get 3.25% at no cost. For a saving of ~$36k, I think you should totally do it. However, I’ve missed the fact that the last 4 months without mortgage will offset you $11525.16. So your real saving is ~$25k, not $36k. Still worth it I think.[/quote]

I got it from ucodegen too. Yes, thanks I am a dumbass (compared to original loan amount). Actually, it also doesn’t include the cost that I paid on the first loan too.

[Coronita]

[quote=AN]Here’s the numbers:
Your original loan of $417k at 3.75% will cost you a total of $128,853.17 in interest over 15 years. Since you said you paid off $7k in principal, then that would mean you paid off $5,180.01 in interest. So if you continue on this loan, you have to pay the remaining $123673.16 in interest.

If you refi today with the remaining balance of $410,049.94, your total interest over the next 15 years would be $108,582.78. That’s a saving of $15090.38 over the next 15 years in interest. So, lets say your prior loan cost you $6k, then the saving on interest – prior loan cost is $9090.38. This is not counting the monthly payment saving.

Prior loan’s monthly payment is $3,032.52 and the new loan’s monthly payment is $2,881.29. That’s a saving of $151.23/month or $27221.40 over 15 years. Add this saving with the $9090.38 in saving on interest and your total saving would be $36311.78. However, the down side would be you paying 4 more months.

I didn’t count the ~$5k you already paid in interest because you already paid for that. My calculation is strictly on whether you should refi right now if you can get 3.25% at no cost. For a saving of ~$36k, I think you should totally do it. However, I’ve missed the fact that the last 4 months without mortgage will offset you $11525.16. So your real saving is ~$25k, not $36k. Still worth it I think.[/quote]

I got it from ucodegen too. Yes, thanks I am a dumbass (compared to original loan amount). Actually, it also doesn’t include the cost that I paid on the first loan too.

[Coronita]

[quote=AN]Here’s the numbers:
Your original loan of $417k at 3.75% will cost you a total of $128,853.17 in interest over 15 years. Since you said you paid off $7k in principal, then that would mean you paid off $5,180.01 in interest. So if you continue on this loan, you have to pay the remaining $123673.16 in interest.

If you refi today with the remaining balance of $410,049.94, your total interest over the next 15 years would be $108,582.78. That’s a saving of $15090.38 over the next 15 years in interest. So, lets say your prior loan cost you $6k, then the saving on interest – prior loan cost is $9090.38. This is not counting the monthly payment saving.

Prior loan’s monthly payment is $3,032.52 and the new loan’s monthly payment is $2,881.29. That’s a saving of $151.23/month or $27221.40 over 15 years. Add this saving with the $9090.38 in saving on interest and your total saving would be $36311.78. However, the down side would be you paying 4 more months.

I didn’t count the ~$5k you already paid in interest because you already paid for that. My calculation is strictly on whether you should refi right now if you can get 3.25% at no cost. For a saving of ~$36k, I think you should totally do it. However, I’ve missed the fact that the last 4 months without mortgage will offset you $11525.16. So your real saving is ~$25k, not $36k. Still worth it I think.[/quote]

I got it from ucodegen too. Yes, thanks I am a dumbass (compared to original loan amount). Actually, it also doesn’t include the cost that I paid on the first loan too.

[Author]

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