Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 03-27-2006, 10:38 AM   #1
Thinks s/he gets paid by the post
Bimmerbill's Avatar
Join Date: Jan 2006
Posts: 1,628

Ok, I need help calculating if refinancing my primary mortgage and paying off my home equity is a good idea.

124K on primary at 6.25%, 30 year total, paid 4 years.
37K on home equity, I just locked in rate of 6.99% for 15 year pay off.

I am looking at rolling both together and refinancing for 30 years, paying twice a month (my current mortgage holder doesnt have a bi weekly program) to cut off a lot of interest and shorten the term. 6.125%, .5 points and about 2500 cash required for closing costs.

I will then pay extra on it. I think I will save on the home equity loan, but not sure.

Bimmerbill is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Refinance?
Old 03-27-2006, 11:06 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
Join Date: Mar 2003
Posts: 15,911
Re: Refinance?

I come up with an effective rate of 6.32% on the new loan, ignoring any prepayments you choose to make. Considering that you now have a blended rate of 6.42%, I don't think it is worth refinancing. If you want to cut interest expense direct you extra payments to the home equity loan.
"Neither my companion or I carry firearms on our persons. We depend on the goodwill of our fellow man and the forbearance of reptiles."

- English Bob
brewer12345 is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
pay off the rental mortgage or refinance and invest the difference? WM FIRE and Money 19 02-12-2007 05:32 PM


All times are GMT -6. The time now is 07:01 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.