MBR question. I’ve never done one. Currently contributing ~$1000 into taxable per month. max 401k, HSA, Roth IRA. Company plan allows after tax contributions and in service distributions, so I think that means it’s a MBR green light. My plan is at empower so everything is done on paper, very cumbersome process, and there is a $40 fee for each in service distribution. I believe when I make an after tax contribution, it gets invested based on my investment options for my 401(k)? More in comments
Is that including the new rules on refinance fees? I had thought the target to refi is a half %.
The old rule or guideline was it generally made sense to refi if you could drop your rate by a percent (for example 5.25% to 4.25%). Now with lower rates and lower closing costs it can make sense for smaller reductions.
Saving 200 on interest implies $640k mortgage, how are the closing costs so low?
Interesting, I guess I didn't consider lender credits. My state mortgage tax and title fees alone were that much and my loan is half the size of yours.
Why wouldn't you do this if the cost is so low? It pays for itself in under a year.
Go for it! That’s $200 you can channel elsewhere to work for you. Considering you are not selling anytime soon.
I didn't do the math, but I have a 2 year roi. If you can't pay for it in 2 years (24 mo or less) don't do it.
I'll do the math...
1500/200 = 7.5 months
Plus they'll likely skip a mortgage payment.
I'd do it.