27 April 2020, 06:40 PM
Piano*DadRefinancing?
Anybody refinanced recently?
I'm in the process for the place we'll likely retire to in Santa Fe.
27 April 2020, 09:30 PM
Piano*DadWhat's the rule of thumb for when it makes sense? Something like 1%, I think. We're cutting the rate by 1.35%.
27 April 2020, 09:48 PM
ShiroKuroOur mortgage is too new so we’re not considering it. Plus, I want to hold on to our cash reserves and I assume there’s an origination fee when you refinance.
27 April 2020, 10:35 PM
Piano*DadThere are closing costs, but with a big enough interest rate cut (and I'm thinking it's significantly lower than 1%), the payback period is very short. And I never pay points.
27 April 2020, 11:31 PM
piquéIIRR the rule of thumb is 1%. Also of course you need to plan to hold onto the property long enough to justify the expense. Which includes an appraisal and closing costs.
27 April 2020, 11:48 PM
Steve MillerI look for a payback of less than half the amount of time I expect to keep the loan.
28 April 2020, 08:48 AM
Piano*DadMy payback of closing costs should be about 9-10 months. A good deal at any discount rate.
29 April 2020, 01:14 PM
piquéquote:
Originally posted by Piano*Dad:
My payback of closing costs should be about 9-10 months. A good deal at any discount rate.
P*D, what rate did you get? I just looked into it and it was 3.5 or 3.6 percent for Regis. Not low enough to make it worth doing for us.
29 April 2020, 01:14 PM
piquéquote:
Originally posted by Piano*Dad:
My payback of closing costs should be about 9-10 months. A good deal at any discount rate.
P*D, what rate did you get? I just looked into it and it was 3.5 or 3.6 percent for refis. Not low enough to make it worth doing for us.