U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 11-02-2011, 12:36 AM
 
1 posts, read 1,745 times
Reputation: 10

Advertisements

I have a 15 year mortgage, 1 year old, at %3.875 APR. The balance is about $221000. I have a Refi offer for %3.25 with $1050 closing costs or %3.375 with no closing costs. the agent says Iw ill save $150 a month, is that true? should I do the Refi?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 11-02-2011, 09:37 AM
 
Location: Las Flores, Orange County, CA
26,342 posts, read 90,524,992 times
Reputation: 17788
There are numerous "Should I Refinance?" calculators on the internet. I would try several of them and see if there is a slam dunk consensus amongst them based on the assumptions you provide.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-02-2011, 01:12 PM
 
Location: SF Bay Area
13,522 posts, read 20,896,881 times
Reputation: 20218
There are other costs besides closing costs in a refi so gather all your facts first.
Use this calc to start with: Refinance | Savings from Refinancing Calculator by Bankrate.com
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-02-2011, 01:31 PM
 
255 posts, read 497,967 times
Reputation: 172
Quote:
Originally Posted by sfenoid View Post
I have a 15 year mortgage, 1 year old, at %3.875 APR. The balance is about $221000. I have a Refi offer for %3.25 with $1050 closing costs or %3.375 with no closing costs. the agent says Iw ill save $150 a month, is that true? should I do the Refi?
Using the 3.875% vs. 3.375% on a 15-year fixed mortgage of 221k, the following are the approximate payments:

3.875%: 1706/mo
3.375%: 1566/mo

150/mo sounds about right... but you will have to restart your 15-year schedule again, which means you will pay one extra year if you refinance. That would be 1566 x 12mos = 18,000+.

I don't think it makes much difference either way.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-02-2011, 04:48 PM
 
12,823 posts, read 23,160,254 times
Reputation: 11002
If you pay extra principle you can still complete it on the original schedule.

Instead of looking at the monthly cost, look at the total cost of interest for the remaining life of your current loan vs the life of the proposed loan. As suggested you can use online calculators to accomplish this. Play around with less and more aggressive pay off schedules, ranging from 15 down to 7.5 years. Then you can make a decision purely informed by total cost.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 11-02-2011, 05:25 PM
 
Location: Glendale, CA
1,299 posts, read 2,418,486 times
Reputation: 1393
It also depends on what your goal is (i.e. is it to reduce your monthly payment due to cash flow issues?), and how long you expect to own your house.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads

All times are GMT -6. The time now is 08:44 PM.

© 2005-2023, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top