Refi Home Mortgage to drop 1%

[Holladay]

I have refinanced our home a few times. I thought the school of thought is that it is worth doing if you can drop the interest by 1 point.

Currrently, ours is at %3.75. I see ads for %2.6. Is that enough to justify a refi. We have ~14 yrs left and the %2.6 is for 15 yrs.

Thoughts?

[O.city]

We did ours and got locked in at 2 something. Gonna be in this house til my next house which will be six feet deep.

[Dallas Chief]

Which is the bigger scam- home mortgages or health insurance?

[Shaid]

yeah, I have 8 years left and am at 3.375. $87k left. Once I add in closing costs, the math doesn't really work for me.

[Bill Brasky]

I just refied down to 3.5% from 4.62%. Saved big boy money on that one since we still have 28 years left on the loan. If I can get another half a point and get down to the high twos, I'd be ecstatic.

[tyecopeland]

Originally Posted by Dallas Chief

Which is the bigger scam- home mortgages or health insurance?

Health insurance but it's probably closer than I feel about it.

[BigCatDaddy]

Originally Posted by Dallas Chief

Which is the bigger scam- home mortgages or health insurance?

Mortgage and it's not close. Whoever came up with them is a damn genius and self centered asshole.

[Pablo]

Got in last summer at 3.5% and that was just an amazing number at the time. Under 3 is nuts.

[Third Eye]

Originally Posted by Dallas Chief

Which is the bigger scam- home mortgages or health insurance?

Not sure how either are a scam. Both can be a pain in the ass though.

[Hog's Gone Fishin]

Use a HELOC account to fast forward paying off your mortgage. Don't worry about refinancing to grab 1%. Put your paychecks into your HELOC. I've used this strategy for years and have saved 10's if not 100's of thousands of dollars in interest.

[Jenson71]

Originally Posted by Hog's Gone Fishin

Use a HELOC account to fast forward paying off your mortgage. Don't worry about refinancing to grab 1%. Put your paychecks into your HELOC. I've used this strategy for years and have saved 10's if not 100's of thousands of dollars in interest.

I’m confused. Wouldn’t this only make sense if your HELOC had a better interest rate than your primary mortgage?

[locomoulds]

I’m in the process of doing a refi on our home. Going from a 4.125 to a 2.875 on a 20 year mortgage. Still have 27 years on my original mortgage so I am shaving off 7 years. Payment is going up slightly but it’s worth it to shave off the years. Aim loan is great resource to get a quick quote without having to give away any personal information. Plus they have some of the best rates on the market. They also break down closing costs by rate. You can then do an analysis to see if the refi is worth it. In my case my payback period was only two years.

[Molitoth]

Damn, I just Refi in February.

Shaved 6 years off my loan and stayed the same payment.

[Bearcat]

Originally Posted by Dallas Chief

Which is the bigger scam- home mortgages or health insurance?

A mortgage is just a loan?
On the surface, I don't know why. Refinancing can be a scam, just have to do the math on it. PMI is absolutely 100% a scam and ****ing bullshit.

Health insurance is the one insurance that I think of as less of a scam as others. I've been paying into car insurance for 20+ years and haven't ever used it once... and probably won't ever make up that money if I do use it. Health insurance though.... you can put into it for 30 years and easily make up for the cost because everything is so damn expensive.

Of course, any insurance company will do everything in its power not to pay, which plays into the scam.

[Hog's Gone Fishin]

Originally Posted by Jenson71

I’m confused. Wouldn’t this only make sense if your HELOC had a better interest rate than your primary mortgage?

Nope. Your interest on the HELOC is calculated on the Average daily balance. The interest on your mortgage is based in the loan balance.

For example borrow 5,000 off your HELOC and dump it on the principal of your mortgage. Then if you bring home 1000 a week over the month and dump it in your HELOC you'll pay interest on $2500 at the end of the month because your balance goes down by $1000 every week.

3% interest on 5000 is $150
4% interest on 2500 is $100

Just use enough of your HELOC you can pay it back shortly. 1 or 2 months and then do it again.

[Third Eye]

Originally Posted by Bearcat

A mortgage is just a loan?
On the surface, I don't know why. Refinancing can be a scam, just have to do the math on it. PMI is absolutely 100% a scam and ****ing bullshit.

Health insurance is the one insurance that I think of as less of a scam as others. I've been paying into car insurance for 20+ years and haven't ever used it once... and probably won't ever make up that money if I do use it. Health insurance though.... you can put into it for 30 years and easily make up for the cost because everything is so damn expensive.

Of course, any insurance company will do everything in its power not to pay, which plays into the scam.

That’s the perception, but it’s not really the truth. In general, health insurers pay out more than than they are contractually required. It’s worth it to pay for the occasional procedure that isn’t technically covered than the publicity that will come with it. Of course they still **** up from time to time, but that’s unavoidable.