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09-09-2008, 09:21 AM
 983 posts, read 3,493,648 times Reputation: 357

Sorry, if I have not read all the posts carefully.

But have you compared time to maturity (how long it will take to pay off debt from now) between the two options?

If you keep doing what you are doing, let's see how long it takes. Assuming you keep making \$5k payments, then it will take 8 years and 2 months to pay off your debt. Instead, if you pay just the required \$4197, it will take 10 years and 3 months to pay off your debt. (You can create an amortization table in Excel starting with \$387k balance.)

Now suppose you refi. If you refi for a 15-yr loan and don't make additional payments, it will take 15 years. Instead, will you keep making \$5k payments after refi? If so, it will take 8 years to pay off the debt.

To me, it's not worth to refi.

(BTW, either your interest payment of balance is wrong. Assuming \$387k balance, interest payment for this month is \$387k * 6% / 12 = \$1935.) If \$1935 is correct, then your balance should be \$397,800.)

09-09-2008, 03:39 PM
 Location: Fort Myers, FL 1,286 posts, read 2,599,707 times Reputation: 249
Quote:
 Originally Posted by acegolfer Sorry, if I have not read all the posts carefully. But have you compared time to maturity (how long it will take to pay off debt from now) between the two options? If you keep doing what you are doing, let's see how long it takes. Assuming you keep making \$5k payments, then it will take 8 years and 2 months to pay off your debt. Instead, if you pay just the required \$4197, it will take 10 years and 3 months to pay off your debt. (You can create an amortization table in Excel starting with \$387k balance.) Now suppose you refi. If you refi for a 15-yr loan and don't make additional payments, it will take 15 years. Instead, will you keep making \$5k payments after refi? If so, it will take 8 years to pay off the debt. To me, it's not worth to refi. (BTW, either your interest payment of balance is wrong. Assuming \$387k balance, interest payment for this month is \$387k * 6% / 12 = \$1935.) If \$1935 is correct, then your balance should be \$397,800.)
well then you should have read at least the first post. the mortgage started at \$700k = \$4,197 @ 6% - 30 Year Term.

09-09-2008, 10:49 PM
 983 posts, read 3,493,648 times Reputation: 357
Quote:
 Originally Posted by brokerdave well then you should have read at least the first post. the mortgage started at \$700k = \$4,197 @ 6% - 30 Year Term. why don't you re-read the OP post and then my reply.
Do you know the difference between time to maturity and the term? The mortgage is 30 years but he has made the payments, which makes the time to maturity less than 30 years.

If time to maturity is 30 years, his loan balance should be \$700k not \$387k.
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