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Answers (5)
- acillatem86
- Contributions:19
I think you read it wrong.........we paid the cars off 7 months ago.Oh, I guess I should have clarified.....I wasn't going to go to a 30 year loan from our current 15 year, just refinance at a lower rate with another 15 year loan. Also, the only reason we took cash out and paid off the cars 7 months ago was to increase our monthly cash flow, and "recession proof" ourselves as much as possible. I know that is never normally a smart thing to do by any means, and I would never even considered it, except for the inevitable worsening economy. I never thought I'd say I was glad I did that, but right now I am, It's about $800 a month we don't have to come up with, and I'm self employed, and my work has slowed way down. It was hard to take that extra money and do that, trust me.
- Clay Branch, "Georgia Loans"
- Contributions:7838
I would leave it alone and keep paying additional. Paying short term debt with long term loans will not help you. You will have to replace the cars in a few years and then you have a higher mtg payment and more car loans.
- acillatem86
- Contributions:19
Yeah, our current balance is $103,282,and it is at 5.5% for 15 years, so that's what we're on the fence about.......going down to 4.25% saves us $69 a month, and $6,316 over the life of the loan, which isn't earth shattering, so we we're kind of wondering if the average person would just leave well enough alone. We have always paid extra towards the principal, and plan on continuing to do that with the current loan, and plan on being done in 10 years or maybe less, and that wouldn't change much if we did the refinance.
With a loan amount of the size, you are in good shape with what you have.
- acillatem86
- Contributions:19
No one has an opinion on this???
Should I refinance? Need a few opinions please.
We're about to refinance our mortgage, and drop our rate, but my wife and I are on the fence as to whether or not it's worth it. Seven months ago we were 5 years into a 20-year fixed loan with a 5.5% interest rate. We had reached the "break even" point as far as the costs of doing that loan, and coincidentally decided it would be smart to refinance again, to get some cash to pay off a couple car loans and put a roof on our house. We wanted to do a 15-year loan and keep the 5.5% rate, and had to pay points to do so. Our payment went from 804 to 886, so there isn't really any "breaking even" so to speak. The bottom line is the total cost to do that loan 7 months ago was $5,200. The total of the remaining payments on that loan would be $153,371, and the total of the payments if we did this new refinance that we're on the fence about would be $147,054, so the difference is $6,316; that's what we'd save if we do this. Is this stupid, being that we just spent $5,200 7 months ago to do the current loan? Or do I just look at the $6,316 more we'd spend if we did nothing because the past is irrelevant in considering this?
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