Quote:
Originally Posted by milt
Throw in the points he will pay and do some more math. He won't be right side up for a long time. Yes, 25.2K over the life of the loan (30 years). But, no one stays 30 years these days in one house. If they do, they are extremely unlikely to have the same loan they started with. Meaning, that the 30 years keeps getting put off and points added with each refi make the principle that much more.
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Yeah, we don't have the info on the points so I was trying to illustrate that it's not enough of a diff w/out the closing costs to warrant the aggravation.
There are all sorts of ways to save money. Sometimes the more you spend the more you save.
If it's an issue of trying to work within a tight monthly budget and save a couple of bucks to make life easier that's one thing.
But if the motivation is to save money over the life of the loan then spending more now in an extra principal payment will return far more in total cost savings and will build equity faster.
And let's remember that equity is like cash in pocket. Can be used to float a LOC whose interest is tax deductible. So for example you can lend yourself your own money and buy a new car interest free.