Anyone refinance during this mess? What rate did you get?
- Thread starter CLUB215
- Start date
What is your current interest rate/financial situation? Refinancing can be a definite yes if you roll closing costs into your interest rate. Also is useful to get cash.
We are 2 years into a 7 year ARM. Rates seem low but I've been curious if anyone else has shopped around. Don't know if we'll be here another 5 years but some stability with the rate might be worth it, just in case.
4.5% on a 30 year (25 years left to pay), refi'd to 3.3% on a 20 year. My total monthly payment didn't change.
Nope. Lack of mortgage is more boner inducing than someone refinancing.
Yeah I know still got 5 more yrs on mine. That day will be orgasmic. Still having a rate drop to 2.8 on a large balance is very bangable.
My biggest thing is switching into a fixed vs the adjustable we have now. Fixed rate two years ago was 4.5%
30 year fixed: the American dream
Douglas C. Neidermeyer
HR Legend
We are there. The older you get the more comfortable the feeling of not having a mortgage where you live. Double that comfortable feel during times of economic turmoil.
We had planned to have cars and house paid off by 45, but damn kids in college. No car payments and 4 years left on mortgage, so we’ll be wrapped up by 49. Thank dog we never bought a house out of our means or a new car. The financial freedom will be much so much better. Ok, enough sounding like Ramsey.
This month closing on 15-year 2.625%. Was only 2+ years into our last refinance, which was a 20-year 3.5% and I never thought I'd ever need to think about refinancing again. Payment will stay about the same but note paid off almost 3 years earlier.
Was paying 5% on my mortgage from a 2011 refi so said f it and paid it off in Jan before COVID hit. Once the market crashes again will do a cash out refi and roll the dice.
Refi’d some farm land in Feb before COVID from 4.9 to 4.17. Could have had 3.65 on that now. Will have to wait 1 year til Feb 2021 to refi it again with smaller fees.
Also have a variable rate on some other farm land that dropped from 4.85 to 2.60 now in the last year or so.
I get 1% dividend back on my farm loans so it lowers my rate by 1% from what I’m charged which is nice.
Refi’d some farm land in Feb before COVID from 4.9 to 4.17. Could have had 3.65 on that now. Will have to wait 1 year til Feb 2021 to refi it again with smaller fees.
Also have a variable rate on some other farm land that dropped from 4.85 to 2.60 now in the last year or so.
I get 1% dividend back on my farm loans so it lowers my rate by 1% from what I’m charged which is nice.
That's the way to do it.
If you re-fi'd into another 30 yr, you actually may end up paying more in interest, overall, by re-setting the interest payment schedule. Ergo, you need to look at total interest costs over time, not just the monthly cost. You want to lower both; you should be lowering the total interest to be paid.
Going to move from a 30 year at 4.2% to a 15 year at 2.8%. That will cut 7 years off the loan and keep our payments virtually the same. Very nice. . . now I just need to get it done.
Because some people are only a few years in to a 30 yr or ARM, and then the refi into another 30 year, and although they do reduce their payments, they restart the clock on paying mostly interest, not principal, and end up with a loan with higher overall cost.
If your immediate need is to lower the monthly cost, then eat the interest in the long term; but the better long term strategy is to lower overall interest payment and shorten the loan term.
Went from 4.45% on 30 yr (about 23 yrs left) to 2.25% on 15 yr. We were paying extra each month towards principal, so our payment will only be about $50 more per month and shave 7 yrs off. Also, moving to bi-weekly payment should knock another years worth off as well.
Last edited:
Yes, but you're still paying most of the interest of the 30 on the front end.
Many people only look at the monthy cost - like when they buy cars and end up underwater. Simply pointing out that there are other factors if you want to make a sound financial decision.
