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Thread: 15 year vs 30 year refi

  1. #16
    Join Date
    Dec 2019
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    The old pueblo in el norte.
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    Quote Originally Posted by John Goodin View Post
    Kev, Home equity loan rules vary from state to state so all advice here may not apply to your situation. You may not need an appraisal. If allowable your lender may be able to pull your home value from the tax rolls. This is usually possible when your refinanced amount will be significantly less than the home's value. This would save you a few hundred bucks in closing costs.

    I have done about a dozen home purchases, refis and home equity loans in Texas. If you live in Texas I can provide more state specific information if needed.

    This is how my house was appraised in March. Then the lender sat on it until the credit check expired, which is a good thing for me as interest rates have dropped. FWIW, the lender still charged me the appraisal fees, and I won't ever be dealing with them again.
    ~mike

    happy in my mud hut

  2. #17
    Thanks for the replies everyone!

    So we made an offer, it was accepted, contingent on the buyer getting their money in 30 days. If not, we're in default, lose our earnest $, and possibly the mobile to a higher offer. Credit Union sez it'll take 45 days. Arrggh..

    Realtor we're dealing with has a favorite go-to mortgage company, had a talk with them today, and uploaded another loan app and all the other paperwork. FWIW, appraisal is required by both so no saving that 5 bill$

    CU app is on hold for now. I love my CU, and so does everyone apparently, very busy. They're pretty popular around here.

    Rates are the same EXCEPT, the CU offers an 1/8 point off but comes with discount points and more closing costs. The MoCo doesn't offer the 1/8 reduction but less out of pocket. Payment is about $12 different so not hardly a deal breaker. Closing in 3 weeks likely, and 'practically' guaranteed within 30 days. If push comes to shove, I CAN get enough cash together to fend off default.

    So aside from the long closing snafu, things are progressing nicely. Very nicely, actually-- as with every other refi we've ever done, we're pulling a bit of extra out to pay off a couple of loans, the payments of which are more than our current mortgage payment. Yeah, I know, paying interest for 30 years on a few bucks isn't the best financial move, but at least it's LOW interest - AND, I just got my SS approval letter yesterday. Mo money! And with that I'm going to inquire with the SSA about eliminating our self employment taxes (which their paperwork indicates is do-able, if I read it right)... So what started out a few days ago as a bit of a spooky ordeal to help out some family, when all the numbers are crunched- lower mortgage payment, new SS money, zeroing out 2 bills, and keeping our SE tax for ourselves, our take-home pay will increase over $4k per month-- works for me!

    And yeah, I know most of this windfall has nothing to do with acquiring housing for the kids-- but who cares?
    ========================================
    ELEVEN - rotary cutter tool machines
    FOUR - CO2 lasers
    THREE- make that FOUR now - fiber lasers
    ONE - vinyl cutter
    CASmate, Corel, Gravostyle


  3. #18
    Join Date
    Sep 2007
    Location
    Upstate NY
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    Quote Originally Posted by Lisa Starr View Post
    Kev,

    The 30 year mortgage will cost you about $59,000 in extra interest over the 15 year.

    We've found that our best option over the years has been to go with the longer term. If you dealing with a credit union, ours was very willing to take an automatic payment each week and credit it each week as well. That alone knocked a couple years of the loan. Anytime either of us received a raise at work, 50% of the increase was immediately added to our payment amount. In the end, we paid off a 30 year mortgage in just over 17 years.
    If 15years is a lower interest rate then 30years, wouldn't you have saved even more with a 15 year mortgage?

  4. #19
    Join Date
    Feb 2003
    Location
    Lafayette, IN
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    4,561
    Quote Originally Posted by Wade Lippman View Post
    If 15years is a lower interest rate then 30years, wouldn't you have saved even more with a 15 year mortgage?
    She probably would have, but having a 30-year loan gives people cash-flow flexibility in case of a loss of income. Make double payments (extra to principal) from the start, then if there's a change in job status for a few months, you can pay just the regular payment. I seem to recall calculating it as about 10 years to payoff (but don't quote me on that) with double payments on a 30-year mortgage.
    Jason

    "Don't get stuck on stupid." --Lt. Gen. Russel Honore


  5. #20
    Just did a calculation, $200k loan 3% 30 years, payment is $842, adding $842 each month will pay off the loan in 11 years 7 months...

    Same amount at 2.8% for 15 years, payment is $1362, a difference of $520... now add that $520 to the 30 year payment, and the loan will pay off in 15 years 4 months-- nearly a wash...
    ========================================
    ELEVEN - rotary cutter tool machines
    FOUR - CO2 lasers
    THREE- make that FOUR now - fiber lasers
    ONE - vinyl cutter
    CASmate, Corel, Gravostyle


  6. #21
    Join Date
    Feb 2003
    Location
    Lafayette, IN
    Posts
    4,561
    Quote Originally Posted by Kev Williams View Post
    Just did a calculation, $200k loan 3% 30 years, payment is $842, adding $842 each month will pay off the loan in 11 years 7 months...

    Same amount at 2.8% for 15 years, payment is $1362, a difference of $520... now add that $520 to the 30 year payment, and the loan will pay off in 15 years 4 months-- nearly a wash...
    So what is the payoff time on the 15-year loan if an extra $322 is paid per month (the difference between a double payment on the 30-year, and the payment on the 15-year)?
    Jason

    "Don't get stuck on stupid." --Lt. Gen. Russel Honore


  7. #22
    Join Date
    Sep 2007
    Location
    Upstate NY
    Posts
    3,788
    Quote Originally Posted by Kev Williams View Post
    Just did a calculation, $200k loan 3% 30 years, payment is $842, adding $842 each month will pay off the loan in 11 years 7 months...

    Same amount at 2.8% for 15 years, payment is $1362, a difference of $520... now add that $520 to the 30 year payment, and the loan will pay off in 15 years 4 months-- nearly a wash...
    4 payments of $1,362 is $5,200. Not really a wash.

  8. #23
    ok, maybe not "nearly", but $5200/15 years is $28.88 a month-- many people's credit card interest is higher than that. Just sayin'
    ========================================
    ELEVEN - rotary cutter tool machines
    FOUR - CO2 lasers
    THREE- make that FOUR now - fiber lasers
    ONE - vinyl cutter
    CASmate, Corel, Gravostyle


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