Refinance Your Mortgage?

[EagerBeaver]

Interest rates have gone crazy low!!!!!!!!!!!!!

I recently got a letter offer to refinance my mortgage at a rate of 3.6% interest. I checked around and my local mortgage broker whom I used when I refinanced in 2010 offered me a new 15 year mortgage locking in at 3.375% interest, with $250 off closing costs, to replace my current 15 year mortgage which is at a locked rate of 4.25% interest.

The math shows that my new monthly mortgage payment would be $200 less than my current monthly mortgage payment..........that is an extra escort per month, fellas. It is a no brainer.

 

[simonpaul]

Interest rates have gone crazy low!!!!!!!!!!!!!

I recently got a letter offer to refinance my mortgage at a rate of 3.6% interest. I checked around and my local mortgage broker whom I used when I refinanced in 2010 offered me a new 15 year mortgage locking in at 3.375% interest, with $250 off closing costs, to replace my current 15 year mortgage which is at a locked rate of 4.25% interest.

The math shows that my new monthly mortgage payment would be $200 less than my current monthly mortgage payment..........that is an extra escort per month, fellas. It is a no brainer.

Pay the mortgage sooner instead,after you finish to pay ,you can and you will be able to see an escort a least 3 times a week

 

[Sol Tee Nutz]

Pay the mortgage sooner instead,after you finish to pay ,you can and you will be able to see an escort a least 3 times a week

Yes, never lower your payments if you can afford it. Pay the 15% of remaining balance or whatever your bank allows every year if possible.

 

[HornyForEver]

No bank in Canada is going to lock an interest rate for 15 years, the maximum period I am aware of is 7 years. Maybe that's why the real estate market is healthier in Canada than in it is the States. The wise descision is to get rid of your mortgage as soon as possible. I hope to pay off mine in a year and a half. I have been very disciplined in recent years in making extra payments and I increased my payments to the maximum. Even now, I am much less vulnerable to interest rates fluctuations. It is nice for a person not to share his/her place with a banker and I am looking for that day.

 

[EagerBeaver]

I understand the notion of getting rid of mortgage payments as soon as one can, but why do that at a interest rate of 4.25% rather than 3.375%? You guys seem to not understand the concept of paying less interest. I do get a tax deduction for paying mortgage interest but why pay more interest?

 

[100XTC]

lower your interest rate but keep the same payment per month. That way you will be finished paying your mortgage a few years sooner. I got rid of mine 15 years ago & it's nice not to have those payments anymore.

 

[HornyForEver]

lower your interest rate but keep the same payment per month. That way you will be finished paying your mortgage a few years sooner. I got rid of mine 15 years ago & it's nice not to have those payments anymore.

Yes, that is the point. I would put those 200$ you are saving back in the capital instead of spending it on another SP. The system encourages people to get more and more in debt instead of paying their debts faster, that's how banks make big bucks after all.

 

[panthere]

wow eager beaver i am exactly torn right now on that subject...i have a meeting next week with my bank conseiller....cause i want too put renovation in and out of my house....do asphalte,redoo a bite the kitchen,new and improove bathroom...etc etc..$$$=talking around 25 000 ...just too improve... and i dont know what too do...refinance or take off my action or my celi...etc....just strange you are openning this subject....also i have a meeting with my real estate agent.. cause my house without improvement got a lot of raise also...and i am wondering ..if i want too sell.. someday or you never know if it will be wise too put that much improvement even do i already got a lot of raise value of my house...grrrrrrrr i wish i have a boule de cristal sometimes grrr lolll

 

[EagerBeaver]

Panthere

I did some home improvements last summer that cost me $20,000. I put porcelain tile that looks like hardwood floors in the kitchen, living room and master bathroom and re-carpeted the bedrooms. The current refinancing is just to get a better rate to lock in at. I do not need to lower my monthly payment but the thought of having more spending money is a nice one..........

 

[panthere]

so from your point of view...i should just ask for refinance....cause my monthly payment are perfect...so i was wondering cause i would love too finish pay that house....put refinance a better rate..OR TAKE OFF some of my action etc that i have aside....i stiil gonna have some in case...but still...i dont know what too do..

 

[EagerBeaver]

panthere

You also have to factor in the closing costs. In my case about $1,700 or so. Appraisal fee, application fee, attorney and title search fee (I will get something off on this), recording fees, credit report fee, title insurance, etc. In my case since my property is near the water (Long island Sound) they have to do a flood search for which there is also a fee, this to determine if they will require me to purchase flood insurance. FEMA redrew the flood zones after the damage inflicted by Hurricanes Irene and Sandy, but fortunately my condo sits on elevated ground so I do not believe I am in the redrawn flood zone. The only thing that worries me is the banks have these college kids looking at flood zone maps and in talking to my crackerjack real estate attorney (a former colleague of mine who is a real estate expert), these flood zone maps are very hard to read and interpret and I worry about entrusting some college kid to the task..........

 

[100XTC]

You guys are lucky to have such low interest rates when I bought my place it was at 10% in 76 then up to 18% in 82 slowly it went down to finish at 10% .

 

[Sol Tee Nutz]

You guys seem to not understand the concept of paying less interest.

Duh! I am pretty sure all of us know the concept of paying less interest, we were commenting on your saving $200 for SP's and not applying the savings to the principal. In a previous post you called police and firemen stupid and now think we do not understand interest payments. You gotta give people more credit.

 

[EagerBeaver]

we were commenting on your saving $200 for SP's and not applying the savings to the principal. .

You can save your paternalistic comments. How I spend the savings is not the issue here. It's my money and I get to decide how to spend it. I started the thread to make posters here aware of low interest rates and the possible savings that could result. I gave an example that I thought people could relate to- the savings being the cost of an SP every month. I never said that is how I would spend the savings every month. It's typical of you, putting words in my mouth and not really getting what is being posted.

Also- one of my best friends, who came to GG3 with me and had dinner with Doc and I before GG3, is a retired fireman, so I have no idea what you are talking about. You are just posting nonsense in order to take a shot, which seems like your general style and MO. Panthere and some others posting here also met my friend at GG3. a 20 year fireman and retired being awarded with an honorary axe by his department.

 

[themonk83]

lower interest doesn't mean you're saving in the end. if the monthly payment stays the same (as of right now) but you're only paying less interest then, yes you end up ahead. if your payment is less, you'll have to crunch some future value to determine if its worth it

anyway, depends on what you want

 

[EagerBeaver]

I can lower the monthly payment by as much as $200 if I wanted to, but the decision is how much to lower it by, and I have not decided that yet. I am actually still waiting on the flood search because if it comes back that I will be required to purchase flood insurance by the lender, that will obviously influence what I will do, and it could put the kabosh on the deal, unless they waive it. The lender I am seeking refinancing from is a different lender than the one I have now, which is NOT requiring that I buy flood insurance.

 

[HornyForEver]

Aren't there shorter term mortgages in the U.S. (4-5 years terms) with even lower rates like in here? You were talking about the maturity of guys older than 45 yrs in another thread, so I am assuming you are in your mid forties to early fifties. Someone in that age range will finish paying off his/her mortgage by the age of 60, if a 15 yrs term is signed? I guess a shorter term mortgage might have even saved you like 1.5 or 2 HCs*

* HC = Hobbyist currency, 1 HC = 200$ (Hobyists are known to be dumber than the average population and therefore, they evaluate all goods in terms of multiples and fractions of 1 HC.

 

[st-cum]

Yes, that is the point. I would put those 200$ you are saving back in the capital instead of spending it on another SP. The system encourages people to get more and more in debt instead of paying their debts faster, that's how banks make big bucks after all.

The banks are making their money off credit cards more so than mortgages.
For my part I have a variable rate mortgage 5 years, currently at 2.7% interest. I typically fork over $200 per week in mortgage payments, so that's four girls a month for some of you, or two a month at my preference (2 hour appointment). By the time I'll be done paying off this investment property, I'll be in my early 50s and likely in dire need of SPs!

 

[EagerBeaver]

Unfortunately $100,000 in mortgage debt is not easily paid off in 5 years.......when I refinanced in 2010 I crunched a 30 year mortgage down to 15 but that was after making 10 years of payments.......

 

[G1GBallday]

No bank in Canada is going to lock an interest rate for 15 years, the maximum period I am aware of is 7 years.

10 years is available in Canada. Last summer I got my brother a 10 year fixed rate of 3.39% when our bank's posted rate was 6.69%.

This site is useful for Canadian looking to buy or refinance.

http://www.ratehub.ca/

Also EagerBeaver, unlike in the states, mortgage interest is not tax deductible in Canada so that's why we tend to pay them off as quickly as possible.

Lastly, there is a strategy know as the Smith Manoeuvre that Canadians can use to make the interest tax deductible.

http://www.smithman.net/home.html

Back when I had a mortgage I briefly looked into it but in the end decided to pass and just pay it off as quickly as possible.