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And soft pretzels. I’m on a carb kick, apparently.

Additional Posts in Personal Investment Chatter
How are you investing your money right now?
Thoughts on Lemonade stock? Overvalued?
TVIX for next week?
Is NIO a buy ? For the long term ?
Let me try to clarify - when you refinance, in the simplest sense you are originating a new loan, which the vast majority of the time, has a lower interest rate. You’re weighing whether the interest savings outweigh the fees and ALSO as you mention, resetting the term. The questions you might ask yourself are:
If I was previously in a 30 year mortgage, could I go to a 15 or 20 year mortgage now? This might further drive down your interest rate. The other question is: could I make a commitment to pay additional above the payment each month if you refinance as a 30 year? If there is no prepayment penalty, and you do an extra $100 or $150 a month? What is your monthly savings from refinancing? If you can pay the same amount monthly, more will go towards principal and you will pay it off sooner.
Pro
Why are you paying 50k for a refinance?
If points, points are never worth it
Thanks!
How far into your loan are you?
Not all refinances are 30 year products. I was able to get a 29 year loan that had a special “promotional rate” through one company that was cheaper than a 30 year loan anywhere else. I actually ended up refinancing again about 8 months later and got a 28 year loan, so I haven’t lost any time.
There’s also an option to prepay principal, which can drastically reduce how much time you’re paying the loan. Adding an extra 5% or 10% of the principal you’re paying down each month can often reduce 5 to 7 years off of the life of the loan, especially if you’re paying extra in the first few years where the loan is interest heavy.
2.3% is a great rate, especially if you aren’t buying any points! If you’re more than a few years into your loan, you may want to ask if there is a 20 year or 25 year loan rate that makes sense to help keep the time shorter than the standard 30 year term.
I agree with EY1. Calculate your total interest expense if you refinance and keep making the same payment you make today. That will shorten your term and should save you more. I refinanced to a 10yr loan this year at 2.125 no points. The 10yr vs 15yr saved 1/8th.