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Old 05-15-2014, 11:57 AM
 
2,303 posts, read 2,439,048 times
Reputation: 3843

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If it's in writing that there are no additional fees, then you can ignore the people arguing that there will be hidden fees.

As for the worth it/not worth it. Based on the amount you're paying off per month, I'm assuming you're in a pretty high tax bracket. Don't forget to take into account the fact that the interest is tax deductible.

At the 28% bracket for example,

Current Mortgage deduction: 1030.68
New Mortgage deduction: 703.36

So this means your potential savings of 1169 is actually reduced 327.32 to $841.68.

From that savings, you're now backing out the Refi cost of $300, leaving you with a net after profit of $541.68. That's also assuming that you're "only" in the 28% bracket, which if you can pay 9200/month, you're probably even higher, making the savings even lower.

Not doing this is the right call.
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Old 05-15-2014, 12:35 PM
 
Location: Vermont
5,441 posts, read 15,418,663 times
Reputation: 2641
Is it possible your same lender might do a loan mod for that much. but I don't think another lender would close for $300 all said and done without any other cost.. but I think it is not worth the hassle either.
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Old 05-15-2014, 02:15 PM
 
21,624 posts, read 15,725,241 times
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Just as the last thread you had on this. Why would any bank book this loan all in for 300.00? Refis cost more than this
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Old 05-15-2014, 02:37 PM
 
3,934 posts, read 5,358,394 times
Reputation: 2647
Quote:
Originally Posted by Jeo123 View Post
If it's in writing that there are no additional fees, then you can ignore the people arguing that there will be hidden fees.

As for the worth it/not worth it. Based on the amount you're paying off per month, I'm assuming you're in a pretty high tax bracket. Don't forget to take into account the fact that the interest is tax deductible.

At the 28% bracket for example,

Current Mortgage deduction: 1030.68
New Mortgage deduction: 703.36

So this means your potential savings of 1169 is actually reduced 327.32 to $841.68.

From that savings, you're now backing out the Refi cost of $300, leaving you with a net after profit of $541.68. That's also assuming that you're "only" in the 28% bracket, which if you can pay 9200/month, you're probably even higher, making the savings even lower.

Not doing this is the right call.
Thanks Jeo123.

Quote:
Originally Posted by joe moving View Post
Is it possible your same lender might do a loan mod for that much. but I don't think another lender would close for $300 all said and done without any other cost.. but I think it is not worth the hassle either.
Good point Joe. I did call them a couple of weeks back and threatened to refi with someone else.....I put forth a few different options for them to "keep their customer...", but they wouldn't budge. anyway, as noted before, i agree with you. i decided that it wasn't worth the hassle given the timeline i'm working with and the 'potential/alleged' savings...
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