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mortgage refy question

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challenger73
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mortgage refy question  Reply with quote  

Have 3 loans as of now house 18,775 @ 5 flat.
home equity 4,875 at 4.65
onther smaller home equity owing less than 1,000 at about the same rate as the other. Have a chance to get 2.99, 10 year minimum loan, 30 max
NO fees.
thinking about combining all 3 loans or atleast 2.
Ive been paying an extra 500 a month on the principal of the home for a few years now....knocking it dwn from over35k to the current 18,755. Im scheduled to be paid off at this rate in roughly 16 months maybe 18 tops..... the home equitys, i pay strictly the base payment. Any advice if its even worth messin with with such a short time to pay on all of them, especially with my extra principal contribution on the mortage....thank you
Post Wed Jul 24, 2013 2:49 pm
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oldguy
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Personally, I would refi the house for 30 years at about 4% or 4.5% fixed. An 80% loan, maybe $100,000. Payments would be about $475/m.

US mortgage money is among the cheapest capital in the world, all other nations require 'resets' eery few years, but in the US you can get a fixed rate that is locked for 30 yrs. And 4% is at a lifetime low for most of us (I'm 74, lowest I've seen). Hard to pass up.

And then put that inexpensive capital to work for you in a wealth-building program. Rule of 72, earn 8%, double in 9 years. So $200,000 in 2022, $400,000 in 2031, $800,000 on 2040, and so on. Very Happy

But that's just me, lol - most folks will disagree. Very Happy
Post Wed Jul 24, 2013 3:43 pm
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challenger73
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and why do they disagree old guy?
Post Wed Jul 24, 2013 4:38 pm
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oldguy
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quote:
and why do they disagree


The concept is to borrow longterm money at 4% and invest it at 11% (the historic average of stocks). Most people consider it 'fool hardy & riduculas' to put a mortgage on a paid-for house and use that money to "play the market". It simply doesn't sit well with most people.

In fact, during my engineering career, I learned not to make that a lunch topic at work - I kept my mouth zipped about my investing so that I didn't have to continually defend myself. Very Happy

But obviously it adds risk. First I had to put my houses on the line. Second, I have to be in the stock market and be willing to make 20, 25, and 30 year commitments. Becoming wealthy requires patience, you can't just jump in and out - and you have to be able to resist the temptation to try the 'get rich quick' schemes.
Post Wed Jul 24, 2013 5:25 pm
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challenger73
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I agree it may not be for everyone, thats not a risk taker like myself. It looks good on print. I guess im in that catagory of non risktakers, in my pay scale thats constantly changing..its hard for me to make that step. Being in your 70's now...did you enjoy your life along the way to your wealth goal though? thats all that matters in life to me, Not how much you have at the end, moneys important as we all know. Happiness is the key IMO
Post Wed Jul 24, 2013 5:37 pm
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oldguy
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quote:
Being in your 70's now...did you enjoy your life along the way to your wealth goal though?


Yes, very much so - good marriage, nice kids, good health, lots of fun.


quote:
thats all that matters in life to me, Not how much you have at the end, moneys important as we all know. Happiness is the key IMO


I think 'contented' is a better description than happy. Being happy plus being pleased with your successes equals 'contented'.
Post Wed Jul 24, 2013 10:18 pm
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challenger73
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Good I'm glad.....I always enjoy your input
Post Thu Jul 25, 2013 3:17 am
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norrisgallagher45
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If you are in the process of mortgage refinancing, careful comparison shopping will help you avoid 90% of the mistakes homeowners make. Lenders have clever ways of disguising their markup and junk fees; if you learn to recognize these, you can save yourself thousands of dollars when mortgage refinancing. Here is a list of several questions you need answered when comparison shopping for the best mortgage loan.
Post Tue Aug 20, 2013 9:43 am
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