How low can we go? 30 yr fixed at 3.75% with no fees...

[qwerty]

You have to use qwerchete's numbers for him to see the LEDs.

We somewhat know his ballpark purchase price and if he's going to pay off his loan in 10 years, he probably put more than 20% down.

ps9... can you do the breakdown on $500k loan 5/1 vs 30, no extra payments and see what the interest savings are?

every december i send in a large principal payment. this december will be my second large principal payment, then 8 more to go.

 

[ps99472]

damn, i feel like i have no choice but to refi now. but for 17K (after tax benefit) after five years just doesnt seem worth it. hmmm. ill have to reconsider tomorrow.

Wouldn't that tax benefit apply to all interests regardless of 30yr or 5/1 ARM?  The comparison I did above shows you'll save almost $60,000 in interest payments over 5 years by going with the 5/1.  So ~$1000/month, you can pay your HOA fines with that

the difference in interest was 60K but then when you deduct that 60K, you would save (or at least i would) about 43% in taxes. so the 60K is really 34,200.

But that's still $60k in your pocket no? 

 

[qwerty]

And what is the remaining principal after Year 5?

440K vs 450K

 

[OpenSky]

 

[qwerty]

damn, i feel like i have no choice but to refi now. but for 17K (after tax benefit) after five years just doesnt seem worth it. hmmm. ill have to reconsider tomorrow.

Wouldn't that tax benefit apply to all interests regardless of 30yr or 5/1 ARM?  The comparison I did above shows you'll save almost $60,000 in interest payments over 5 years by going with the 5/1.  So ~$1000/month, you can pay your HOA fines with that

the difference in interest was 60K but then when you deduct that 60K, you would save (or at least i would) about 43% in taxes. so the 60K is really 34,200.

But that's still $60k in your pocket no? 

so using that scenario, i would pay 60K out my pocket for interest over 5 years. but since i get to offset income taxes that i would have otherwise paid to the tune of 25,800, my net cash out the door is 34,200. 

 

[qwerty]

i may have been converted. i PMd PS9 for his mortgage contact as well. at 2.5% and if it covers closing costs it seems like a good move, i feel like i have been cornered by a pack of wolves and had no choice

 

[homer_simpson]

Qwerty- It's a good move if you don't plan on staying for the long haul at your current place.  If you do, you can always refi later again..   You're saving within that time frame though..

#Convertthemexican

 

[qwerty]

Qwerty- It's a good move if you don't plan on staying for the long haul at your current place.  If you do, you can always refi later again..   You're saving within that time frame though..

#Convertthemexican

yeah ill refi as necessary to pay it off in the original 10 year window as planned, worst case scenario we will just pay off the house at the end of year 5 if everything goes sideways. by then we would be at almost year 7 from the original purchase date anyway. thanks everyone.

 

[irvinehomeowner]

Since you were already planning on a 10-year window... you have less to worry about risk wise so a 30-year lock doesn't make sense.

Pay as little interest as possible... esp if you don't plan to finance over the long haul.

#AnotherOneBitesTheARM

 

[OpenSky]

:

 

[irvinehomeowner]

i feel like i have been cornered by a pack of wolves and had no choice

 

[OpenSky]

 

[usctrojancpa]

Please PM me that lender contact info...since everyone is in refi mode I might as well refi too.  >

 

[ps99472]

Pm sent

 

[ps99472]

Rate should be around 2.5-2.625 with enough credit to close with close to no fees.  Good luck

 

[OpenSky]

;D

 

[bones]

Bff

 

[irvinehomeowner]

That's not a laundry chute... that's the OS pole.

#qwermemebait

 

[ps99472]

You have to use qwerchete's numbers for him to see the LEDs.

We somewhat know his ballpark purchase price and if he's going to pay off his loan in 10 years, he probably put more than 20% down.

ps9... can you do the breakdown on $500k loan 5/1 vs 30, no extra payments and see what the interest savings are?

so a 5/1 arm 500K loan at 2.5% vs a 30 year at 3.75% would result in an extra interest of 30,408 through month 60.  the tax benefit from the interest deduction at a combined rate of 43% would be 13,075, so the next cost is 17,333 over 5 years, or about $288/month

I picked a rate for 4.0% which would correlate better today with the 2.5% no fees. 

30 yr

5/1

 

[qwerty]

uploaded the documents necessary to lock in the afternoon.  not sure if the rates moved, but i got quoted 2.75% with no closing costs. so i told her ill just wait for the 2.5% with no closing costs. she will monitor it and lock for me when it hits 2.5%.

thanks everyone.