Mortgage refinancing advice
#16
Re: Mortgage refinancing advice
But what if you can't? What if you lose your job, or get sick and can't work? What if the mortgage market implodes like it did in 2008-2010? You will be utterly shafted paying the floating rate.
Last edited by Pulaski; Nov 15th 2017 at 5:32 pm.
#17
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Re: Mortgage refinancing advice
That's why I love this forum! It gives me food for thought! So i discussed with my lender upping my principal. He gave me a quote that will take me 27.75 years to pay off (which is where i'm at now). Does that not sound right? So it's essentially a 30 year term that'll take me 27.75 years to pay off.
#18
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Re: Mortgage refinancing advice
It doesn't work like that - you will have to do your own amortization calculation to work out how to pay off a 30 year loan in say 23 years. There is no such thing as a 23 year mortgage, and 20 and 25 year mortgages are rarely discussed.
But what if you can't? What if you lose your job, or get sick and can't work? What if the mortgage market implodes like it did in 2008-2010? You will be utterly shafted paying the floating rate.
But what if you can't? What if you lose your job, or get sick and can't work? What if the mortgage market implodes like it did in 2008-2010? You will be utterly shafted paying the floating rate.
#19
Re: Mortgage refinancing advice
It's not quite that bad as there are many scenarios where you could continue to pay the mortgage you already have, but not refinance to a new mortgage, such as if your credit score gets trashed, your income falls, the mortgage business implodes, etc. In the worst case scenario you could take in a lodger, or rent the whole home despite not being able to refi a mortgage.
#20
Re: Mortgage refinancing advice
If you plan to stay where you are, the general advice is to take out a 30 year fixed mortgage.
Rates are almost at historic lows and unlikely to go lower.
You can overpay on your monthly mortgage payments which will pay off the loan more quickly.
If you lose your job you can pay the lower, original payments.
Rates are almost at historic lows and unlikely to go lower.
You can overpay on your monthly mortgage payments which will pay off the loan more quickly.
If you lose your job you can pay the lower, original payments.
#21
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Re: Mortgage refinancing advice
That's why I love this forum! It gives me food for thought! So i discussed with my lender upping my principal. He gave me a quote that will take me 27.75 years to pay off (which is where i'm at now). Does that not sound right? So it's essentially a 30 year term that'll take me 27.75 years to pay off.
#23
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Re: Mortgage refinancing advice
The payment stays the same for 30 years but inflation gradually reduces the payment. Even with 2% inflation, your money is worth much more today than in 20 years than today.
$2000 in 1997 buys much more than $2000 in 2017.
my inflation calculator tells me that
$2000 in 1997 = $3100 in 2017
#24
Re: Mortgage refinancing advice
I do not understand why anyone would pay more earlier with a 30 year fixed?
The payment stays the same for 30 years but inflation gradually reduces the payment. Even with 2% inflation, your money is worth much more today than in 20 years than today.
$2000 in 1997 buys much more than $2000 in 2017.
my inflation calculator tells me that
$2000 in 1997 = $3100 in 2017
The payment stays the same for 30 years but inflation gradually reduces the payment. Even with 2% inflation, your money is worth much more today than in 20 years than today.
$2000 in 1997 buys much more than $2000 in 2017.
my inflation calculator tells me that
$2000 in 1997 = $3100 in 2017
#26
Re: Mortgage refinancing advice
Some people also want their mortgage paid off before they retire, or before their children go to college.
There are a number of sensible reasons to pay down your mortgage.
#27
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Re: Mortgage refinancing advice
Haha. I guess I’m trying to see if I can get a better rate than I got originally and therefore lower my monthly payments without resetting the clock! I agree that a 5 or 7 year ARM is risky and I’ve decided to stay away from them so now seeing what other options are on the table.
#28
Re: Mortgage refinancing advice
Haha. I guess I’m trying to see if I can get a better rate than I got originally and therefore lower my monthly payments without resetting the clock! I agree that a 5 or 7 year ARM is risky and I’ve decided to stay away from them so now seeing what other options are on the table.