About to Refinance My Mortgage

[beenz]

one more thing. for me, I googled an amortization calculator to see how fast I'd pay off my mortgage. I'm gonna save 11 years on a 30 year mortgage simply by paying what I was paying before. so while I originally had a 30 year mortgage with 25 years remaining, I refinanced to another 30 year mortgage at a lower rate paying the same amount I been paying and adding the excess to the principle.

so my mortgage will be paid off in 19 years the way things are going instead of 30, which is saving me another 6 years from where I'd be if I kept my orgininal mortgage. and if I keep increasing the extra principle I pay on mortgage over the years, I'll have it paid off even faster. this shyt is a no brainer.

 

[sayyestothis]

I feel like this is one of the resources that only white people know about and that black ppl underutilize. This wasn’t even on my radar until another brotha insisted I look into it



I’m about to save hella money a month

Make sure u factor in recoup of closing costs if u plan to move over next 6 yrs. Usually break even for an average home loan at these rates are about 6 yrs....

Also don't just look at monthly. Analyze your closing sheet to make sure no unwanted fees and costs are listed or itemized.

Especially if u go with a broker or home loan service vs a bank. Be careful.

 

[Dat Migo]

I disagree. I refinanced back to a 30 because there's no penalty for early repayment.

if you go from a 30 to a 15 or 20, u are locked into a higher payment. if you go from a 30 to a 30, you can still pay extra or pay it off early because you can pay the same payment as if u had a 15 year mortgage. basically having the longer term mortgage gives you more flexibility.

for me, say times get hard, I can immediately go back to paying the lower term I have now instead of adding extra onto the principle each month.

So I just did this. I went from 30 year 4.1% to a 20 year 2.6% and my payment went up a $100. Saved seven years and over $120k in interest. Interest rates are dumb low on shorter terms. OP should at least get quotes for 15, 20, 30 to see everything laid out and make the best decision.

 

[DonRe]

Remember theres a penalty in certain situations. But worth it. Its meant to prevent you doing it but they bullshyttin

 

[charknicks]

Yeah, this is the perfect time to refinance. The rates probably won't be this low for a long time.
I crunched some numbers last night. If I refinanced my current 4.25% to the available 2.75%, I would save about $85-$90/month just in interest. Paying the same monthly amount, it would shave off 4 years and about $17k in interest over the loan.
If you are thinking about it, now is the time

 

[beenz]

So I just did this. I went from 30 year 4.1% to a 20 year 2.6% and my payment went up a $100. Saved seven years and over $120k in interest. Interest rates are dumb low on shorter terms. OP should at least get quotes for 15, 20, 30 to see everything laid out and make the best decision.

I didn't take a shorter term because the interest rates were the same for the 30/25/20 year joints. I could have taken the 15, but then I'm locked in at the higher monthly payment. I'll save the interest and the years by adding the principle anyways.

 

[1thouwow]

Make sure u factor in recoup of closing costs if u plan to move over next 6 yrs. Usually break even for an average home loan at these rates are about 6 yrs....

Also don't just look at monthly. Analyze your closing sheet to make sure no unwanted fees and costs are listed or itemized.

Especially if u go with a broker or home loan service vs a bank. Be careful.

Good advice. I break even before the 2 year mark

 

[Spence]

I would never refinance to go back to a 30. I’m 12 years into our 30 now and we only have $30k left to pay so it would be dumb to refinance since we are paying it off next year

 

[1thouwow]

I would never refinance to go back to a 30. I’m 12 years into our 30 now and we only have $30k left to pay so it would be dumb to refinance since we are paying it off next year

 

[1thouwow]

 

[Marezzy]

I’m paying a 5.3% with a 700 credit score. You think I’ll be able to refinance?

 

[Renkz]

I’m paying a 5.3% with a 700 credit score. You think I’ll be able to refinance?

Yeah, a buddy of mine has 2.5, and a worse credit scorer than yours

 

[Pseudonym]

We just got ours down to 2.75. You won’t regret it.

 

[SleezyBigSlim]

I feel like this is one of the resources that only white people know about and that black ppl underutilize. This wasn’t even on my radar until another brotha insisted I look into it



I’m about to save hella money a month

I think I will do this to lower my mortgage payment but will it add more years to my mortgage? Cuz if so fukk that

 

[Spence]

I think I will do this to lower my mortgage payment but will it add more years to my mortgage? Cuz if so fukk that

Usually the bank wants to take a smaller interest rate in exchange for more years of your time which is their incentive to renegotiate your mortgage. You do save money but it just takes longer to realize that savings since usually people that refinance have been the home a while, refinance to get a cheaper monthly note, then offload that mortgage onto someone else for a new bigger house (or cheaper smaller if you’re retiring empty nester etc).