Mortgage Re-Fi analysis

[john70t]

Back on off-topic.
If the extra interest payments for re-financing to a 10 year bumps your net income down enough to get into a lower tax bracket, the adjusted-cost value for the same payments will be lessened over time when inflation hits and salaries rise to match(lol).

It might be worthwhile to compare three senarios(?):
1) 15 year fixed
2) 30 year fixed
3) 30 year fixed with early payments

[RWebb]

don't forget that a home loan is one of the few tax subsidies for the middle-class

[Flyer88]

Originally Posted by Rick Lee

Depends on how long you plan to stay in the house. Figure out your break-even point by dividing your refi costs by monthly payment savings. Whatever that number is, that's how long you have to live there before really saving anything. If you can pull it off with a 15 yr. note and make an extra payment per year (assuming you plan to stay there a while), you'll do well.

This is the first and most important question to answer...if you are staying then it is a no brainer to go to a 15 year.

[Hetmann]

Originally Posted by RWebb

don't forget that a home loan is one of the few tax subsidies for the middle-class

Enjoy it while you can. It won't be long....

[steve911]

Mortgage rates are at all time lows. The sweet spot (at the moment) is in 10 and 15 year mortgages.

10 year are sub 4% (3.75% - 3.875%)
15 year are similar (3.75% - 4.00%) depending upon points paid (0 to 1.125)

Even 30 year mortgages are sub 5% (4.00% - 4.50%) also depending upon points.

Given that, if you've not refinanced your house in the past six months, you should take a good look at a refi now. Rates are low today due to the weak economic conditions, but won't stay that way forever. As the economy strengthens, rates will go up.

We refi-ed our house last year at 4.75% for 10 years. At the time, I thought that was the last refi we'd ever do on this house.
I just locked in 3.75% for 10 years. 0 points and less than $2K in closing costs.

After this I'll be done - won't be worth the hassle of signing my name a gazillion times again.