Does It Make Sense to Refi?
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Cjuslick 08:20:48 PM Feb 02 2008

you want real mortgage advice or help on a refi OR purchase- email me - been there and done that 10 years...the article from bankrate.com is pretty much on target...examine the cost to do the loan and what the savings will be then see how soon you'll recoup that before you pay it off or sell...simple math people! And watch out for those prepayment penalties!!!!!!!!!!! That's where they can get you in trouble and STAY AWAY FROM THE PAY OPTION ARM HYBRIDS- DO not let anyone tell you that they are a fixed rate loan for 1 or 2%!!!!

Cjuslick 08:13:06 PM Feb 02 2008

I've been a loan officer for 10 years - a 30yr fixed rate loan at 5.625% is about 5.80 per thousand on the loan in payment(i.e. 100,000 loan will be 580/month prinicipal and interest-not counting taxes and insurance expenses!) - so if my math is correct if ATT makes less than 25k a year or about 2000 GROSS a month and he had a mortgage expense ratio of 60% of his GROSS income(25,000 gross income x 4 years = 100,000 total income x 60% = $60,000-that's if he paid next to nothing in taxes after deductions, etc.) and every penny he made went to that mortage the most that loan could be was about 50,000 - sorry ATT not the world most folks buy and sell in...good advice but not realistic....hope most people realize this is not the norm...

PDXWineauxs 07:39:14 PM Feb 02 2008

Ack, it cut off the end of my post...here is the rest...

ATT, it sure would be interesting to find out how you paid off a 30 year mortgage in four years with an income of $25k. Did you come into an inheretence?

PDXWineauxs 07:37:55 PM Feb 02 2008

It is true that the majority of people live beyond their means. Then there are those who do not.

Personally, I do not have any credit card debt...I do not smoke...nor drink coffee. So I am not spending money on interest payments, smoking and coffee drinking.

I'm not claiming to be holier than though, I do spend money in other areas where I could cut back. I do most of my grocery shopping at a high end market, rather than buying less expensive items at Kroger or Safeway.

Refinancing can be a great deal. So far, I have refied once...I did that a year after buying my home in 2002. I am considering it again. My original loan was a 30 year fixed. I now plan to go to a 20 year fixed. My actual monthly payment will go up a bit (about $15), but I will save a ton of interest over the term of the loan. I plan to stay in my home for many years....I bought it brand new in 2001, in a neighborhood that I have lived in for several years.

In my case, refinancing makes sense.

ATT, it su

RF DAMAGE 07:03:59 PM Feb 02 2008

most of us New yawkers can afford a fancy cell phone and cable tv, since we make more then $25,000 a year!, get real!!!!

MGall84148 06:37:39 PM Feb 02 2008

Thirty year mortgage paid off in four years on $25,000 a year? I would be curious for just how much was the original loan. With normal living expenses on that salary, it couldn't have been too much. However, no matter what the original amount--congratulations, and teach me how to do it! :)

PHILC54 06:16:09 PM Feb 02 2008

I agree with ATTblows we ALL live beyond our means and all we have is ourselves to blame we cannot control taxes, gas,food or healthcare going up so we All have to get reponsable and help ourselves take control of or own fiances because there is no one out there to help us

ATTblows 06:03:26 PM Feb 02 2008

Type your own comment hereThis information is just common sense. People try to live beyond their means so I don't feel sorry for most of the people that lose their houses. I do understand that there are a few instances that may arise that will cause hard times for some people like medical reasons, but for most people, they are very ignorant when it comes to finances. They have to be one step above the Jones's. Listen people, you need to stash money away for the hard times ahead! Trim your finances, you don't NEED the expensive cell phones and the cable tv etc. Figure out a budget and try to live BELOW your means for a while. You'll be amazed at how much money you waste every month! I had a 30 year ARM and paid it off in 4 years. I didn't refinance or anything, just paid it off, now I own it free and clear! And I don't even make a lot of money, less than $25,000 per year. Get with the program people, you don't need all of these extra expenses in your life. I'm not saying do