Tales of a refinance, part 2….

[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.

[(former)FormerSanDiegan]

[quote=flu]
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.[/quote]

The costs paid on the previous refi are not relevant in determining whether to re-fi now, so you should not include that in your comparison.

[(former)FormerSanDiegan]

[quote=flu]
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.[/quote]

The costs paid on the previous refi are not relevant in determining whether to re-fi now, so you should not include that in your comparison.

[(former)FormerSanDiegan]

[quote=flu]
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.[/quote]

The costs paid on the previous refi are not relevant in determining whether to re-fi now, so you should not include that in your comparison.

[(former)FormerSanDiegan]

[quote=flu]
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.[/quote]

The costs paid on the previous refi are not relevant in determining whether to re-fi now, so you should not include that in your comparison.

[(former)FormerSanDiegan]

[quote=flu]
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.[/quote]

The costs paid on the previous refi are not relevant in determining whether to re-fi now, so you should not include that in your comparison.

[sdcellar]

Prexactly.

And, fwiw, interest didn’t go into the trash either, just the difference in interest. Closing costs on the other hand…

(and still still doesn’t affect whether you should refinance at no cost now.)

[sdcellar]

Prexactly.

And, fwiw, interest didn’t go into the trash either, just the difference in interest. Closing costs on the other hand…

(and still still doesn’t affect whether you should refinance at no cost now.)

[sdcellar]

Prexactly.

And, fwiw, interest didn’t go into the trash either, just the difference in interest. Closing costs on the other hand…

(and still still doesn’t affect whether you should refinance at no cost now.)

[sdcellar]

Prexactly.

And, fwiw, interest didn’t go into the trash either, just the difference in interest. Closing costs on the other hand…

(and still still doesn’t affect whether you should refinance at no cost now.)

[sdcellar]

Prexactly.

And, fwiw, interest didn’t go into the trash either, just the difference in interest. Closing costs on the other hand…

(and still still doesn’t affect whether you should refinance at no cost now.)

[EconProf]

Flu, you should get a 30-year loan, not 15. Who cares what the interest cost difference is? If inflation and prevailing interest rates in 5 or 10 years are in or near double-digits and you are sitting pretty in a 4% or so loan, you will make so much more money.

[EconProf]

Flu, you should get a 30-year loan, not 15. Who cares what the interest cost difference is? If inflation and prevailing interest rates in 5 or 10 years are in or near double-digits and you are sitting pretty in a 4% or so loan, you will make so much more money.

[EconProf]

Flu, you should get a 30-year loan, not 15. Who cares what the interest cost difference is? If inflation and prevailing interest rates in 5 or 10 years are in or near double-digits and you are sitting pretty in a 4% or so loan, you will make so much more money.

[EconProf]

Flu, you should get a 30-year loan, not 15. Who cares what the interest cost difference is? If inflation and prevailing interest rates in 5 or 10 years are in or near double-digits and you are sitting pretty in a 4% or so loan, you will make so much more money.

[Author]

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