Wednesday, November 07, 2012

Thinking about refinancing the house

Yeah, it would lower the payment.  It would also cost, everything added together, somewhere between $3-4k for closing costs and fees and such.  That's a bite out of savings. 

Someone, a while back, was arguing whether better to do that, or keep paying the mortgage you have in devaluing dollars; it got a bit complicated(yeah, I'm math-challenged; working on it, with not a lot of progress).


Knitebane said...

We did this and discovered a revolting development...

When you lower your interest rate you reduce the amount you can deduct from your taxes.

I'm not saying you shouldn't do it. Just be aware of all the variables.

B said...

Never pay closing costs.


If the bank won't absorb it, then find another lender.

Does it matter who you write the check to?

LibertyNews said...

What Mr. B said. And it's better to have liquid cash for emergencies than a lower payment unless you can replenish the savings in, say, a year with the 'extra' money.

Anonymous said...

The absolutely best thing that you can do is to pay as much extra principle every month that your budget will allow. This will preserve the interest amount for tax purposes and will ultimately shorten the time you take to pay off the mortgage.

Firehand said...

I've been paying extra principal from the first payment. Guess I'll see if I can up the amount a bit more each month.

Yeah, I'm mostly back. Thought might be another day or two before start posting again