Why not refinance?

[UCGal]

Whether you have to put money in to get a good rate depends on several factors – but the biggest factor is the size of your loan.

I have several coworkers who were getting quotes for refi’s from Sheldon and others mortgage brokers a few months ago. 3 of the guys had similar credit, but one had a small balance, one had a medium balance, and one had a higher balance. It was going to cost the small balance guy money – the guy with the bigger balance got cash back (not cash out, but a credit)… the guy in the middle was a break even proposition. (2 of these guys went with Sheldon by the way.)

A 4th guy’s home didn’t appraise to give him 80% (despite having put more than 20% down when he purchased) – so he went FHA and didn’t go through Sheldon.

I talked to Sheldon in this time frame… my balance is pretty low. It would cost money (appraisal, credit check, etc.) and I didn’t qualify for any credits back… the payment savings weren’t large enough to justify.

Another reason not to refi – if you’re significantly into your mortgage – you might not want to reset the clock. Not everyone is disciplined enough to make extra payments to pay it off in the same time frame. I can see why someone with 10 years left on the mortgage, and in their 50’s would NOT want to refi into a 30 year mortgage. Who wants to have a mortgage payment in retirement?

[bearishgurl]

[quote=paramount]I just refinanced at 4.875% 30 year fixed Wells Fargo with a LTV of 103%.

New Payment: Just over $1100 PI.[/quote]

Paramount, I am so happy for you. This will enable you to “hang on” for 2-4 more years until the underwater inventory is washed away and you can get out clean. Smart move, and I’m glad you found a lender that understands the dynamics of what you’re up against. Meanwhile, you have a payment less than rent :=)

[bearishgurl]

[quote=paramount]I just refinanced at 4.875% 30 year fixed Wells Fargo with a LTV of 103%.

New Payment: Just over $1100 PI.[/quote]

Paramount, I am so happy for you. This will enable you to “hang on” for 2-4 more years until the underwater inventory is washed away and you can get out clean. Smart move, and I’m glad you found a lender that understands the dynamics of what you’re up against. Meanwhile, you have a payment less than rent :=)

[bearishgurl]

[quote=paramount]I just refinanced at 4.875% 30 year fixed Wells Fargo with a LTV of 103%.

New Payment: Just over $1100 PI.[/quote]

Paramount, I am so happy for you. This will enable you to “hang on” for 2-4 more years until the underwater inventory is washed away and you can get out clean. Smart move, and I’m glad you found a lender that understands the dynamics of what you’re up against. Meanwhile, you have a payment less than rent :=)

[bearishgurl]

[quote=paramount]I just refinanced at 4.875% 30 year fixed Wells Fargo with a LTV of 103%.

New Payment: Just over $1100 PI.[/quote]

Paramount, I am so happy for you. This will enable you to “hang on” for 2-4 more years until the underwater inventory is washed away and you can get out clean. Smart move, and I’m glad you found a lender that understands the dynamics of what you’re up against. Meanwhile, you have a payment less than rent :=)

[bearishgurl]

[quote=paramount]I just refinanced at 4.875% 30 year fixed Wells Fargo with a LTV of 103%.

New Payment: Just over $1100 PI.[/quote]

Paramount, I am so happy for you. This will enable you to “hang on” for 2-4 more years until the underwater inventory is washed away and you can get out clean. Smart move, and I’m glad you found a lender that understands the dynamics of what you’re up against. Meanwhile, you have a payment less than rent :=)

[bearishgurl]

[quote=UCGal] . . . I can see why someone with 10 years left on the mortgage, and in their 50’s would NOT want to refi into a 30 year mortgage. Who wants to have a mortgage payment in retirement?[/quote]

The answer is, they don’t.

[bearishgurl]

[quote=UCGal] . . . I can see why someone with 10 years left on the mortgage, and in their 50’s would NOT want to refi into a 30 year mortgage. Who wants to have a mortgage payment in retirement?[/quote]

The answer is, they don’t.

[bearishgurl]

[quote=UCGal] . . . I can see why someone with 10 years left on the mortgage, and in their 50’s would NOT want to refi into a 30 year mortgage. Who wants to have a mortgage payment in retirement?[/quote]

The answer is, they don’t.

[bearishgurl]

[quote=UCGal] . . . I can see why someone with 10 years left on the mortgage, and in their 50’s would NOT want to refi into a 30 year mortgage. Who wants to have a mortgage payment in retirement?[/quote]

The answer is, they don’t.

[bearishgurl]

[quote=UCGal] . . . I can see why someone with 10 years left on the mortgage, and in their 50’s would NOT want to refi into a 30 year mortgage. Who wants to have a mortgage payment in retirement?[/quote]

The answer is, they don’t.

[AK]

You got out of PMI, didn’t you? That probably saved you a big chunk of change.

Otherwise the math isn’t quite as favorable. I looked into refinancing a few months ago when rates dipped below 4% … after taxes and so forth it would’ve taken 4-5 years to break even. Just another way in which the mortgage interest deduction promotes otherwise irrational behavior 🙂

[AK]

You got out of PMI, didn’t you? That probably saved you a big chunk of change.

Otherwise the math isn’t quite as favorable. I looked into refinancing a few months ago when rates dipped below 4% … after taxes and so forth it would’ve taken 4-5 years to break even. Just another way in which the mortgage interest deduction promotes otherwise irrational behavior 🙂

[AK]

You got out of PMI, didn’t you? That probably saved you a big chunk of change.

Otherwise the math isn’t quite as favorable. I looked into refinancing a few months ago when rates dipped below 4% … after taxes and so forth it would’ve taken 4-5 years to break even. Just another way in which the mortgage interest deduction promotes otherwise irrational behavior 🙂

[AK]

You got out of PMI, didn’t you? That probably saved you a big chunk of change.

Otherwise the math isn’t quite as favorable. I looked into refinancing a few months ago when rates dipped below 4% … after taxes and so forth it would’ve taken 4-5 years to break even. Just another way in which the mortgage interest deduction promotes otherwise irrational behavior 🙂

[Author]

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