tochsia361
New Member
Cash: $ 0.85
Posts: 4
Joined: 11 Oct 2012
Location: alabama
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| refi or extra payments |
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Hello everyone. First time post. I done a search for the title above but no luck. i searched for mortgage calculators online but found inconsistent results. My wife and I were considering refinancing our mortgage but found the out of pocket cash to do that more than we could do and we don't really want to roll it back in. So we are wondering if paying and extra payment every month. if anyone knows this type of stuff and has time to respond please and thank you very much for your insight, or if you know the website of a good calculator i thank you for that also.
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Thu Oct 11, 2012 7:52 pm |
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tochsia361
New Member
Cash: $ 0.85
Posts: 4
Joined: 11 Oct 2012
Location: alabama
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I just want to save as much money as i can. We cant figure out if the 4k finance charge is going to be more than the savings would be of a 15 yr as opposed to paying extra on our current 30yr to payoff early.
we will be paying $975(thats tax and insureance) for 27 more years at 5% oweing 134,000 now. The bank says we can refi even down to a 3% for 15 years. I knows thats alot of savings because of the 15 years diferance but if we kept our current 30yr at 5% and payed double our more would we save more than if we refi?
Thanks for the help everyone. I have gotten many headaches over this already. Numbers are not my thing. Im in the medical feild and can save your life but when it comes to this stuff it hurts.
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Fri Oct 12, 2012 6:50 am |
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Wino
Senior Member
Cash: $ 113.80
Posts: 560
Joined: 03 Aug 2012
Location: Dubai
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I had the same question. I wrote my own spreadsheet. It was fairly basic, and a one-time issue. Firstly, there is a site called "Chandoo.org" that has a forum with a lot of excel gurus who will be happy to help you develop your own spreadsheet.
Secondly, if you give us more information (present information about your loan: payment, remaining balance, cost to refinance, amount you can pay each month, etc.), we can work the figures and post a spreadsheet for you to view yourself, and maybe play with the numbers.
In my case, it made more sense to pay it off early, but the amount was less than $1000 difference. Disclaimer: I was throwing a huge amount toward the loan. I think anyone else in my situation would have done the refinance.
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Sat Oct 13, 2012 2:37 am |
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tochsia361
New Member
Cash: $ 0.85
Posts: 4
Joined: 11 Oct 2012
Location: alabama
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my monthly payment is 974.36 (this includes tax and insurance) on the 30 year i have now and the balance is 135,000.00. I could pay 2 payments a month without difficulty and more than that with little difficulty. To refi down to 3% on a 15 year the finance charge will be right at 4000.00.
Thank you very much
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Sat Oct 13, 2012 8:46 am |
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nbrown01
New Member
Cash: $ 1.20
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Joined: 14 Oct 2012
Location: Dallas,Texas
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Let's try to keep it simple whether you had a calculator or not.
On a mortgage you have PITI
principle
interest
taxes
insurance
So if you gave me $100 dollar and charge me 10% on terms of the balanced owed then I you would only put 1 dollar towards my balance with me oweing you $99 dollars.
Now if we change the terms making it lesser and also lower the interest rate owed then I am making more toward my principle which is the loan and you are making less on your interest which more of that payment is lowering your balance quicker.
Normally in some state markets a home doubles in value in 10 years and triples in 30 years.
Hope that helps.
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Sun Oct 14, 2012 7:55 pm |
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savemoneyinvestsmart
New Member
Cash: $ 1.40
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Joined: 13 Oct 2012
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I had 27 years left on a 30 year loan that started at 259,000 and 6% interest. I thought it over and decided the best thing for me was to take a 20 year loan in which I got a rate of 3.75%. Shaving 7 years off my loan saves me a ton in the long run and it also worked well into my retirement plan. Also it was only $10 more than the payment I was originally was paying per month.
I would not have done this if I did not plan on being in the house at least 3 more years so I could recoup the money I had to add back onto the loan for closing, but I also came out ahead in my current bank account because I got to miss 1 month of house payment. So in the long run it was a no brainer for me.
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Mon Oct 15, 2012 12:21 am |
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Wino
Senior Member
Cash: $ 113.80
Posts: 560
Joined: 03 Aug 2012
Location: Dubai
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https://dl.dropbox.com/u/104508282/RepayingSheet.xlsx
The link above should get you a sheet you can use to make some calculations. Everything with a yellow background can be changed to recalculate different scenarios. Items in red are negative, so if it is "negative" that you "owe," it's actually money that you have.
I didn't bother to neaten it up too much. Note that it calculates your payments from your figures, and it allows you to either pay ahead by some amount or do multiple payments. You can also use fractional years: 1.0833 is one year, one month, which you could enter as =1+(1/12).
Let me know if you'd like some changes or if you want more functionality.
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Mon Oct 15, 2012 7:47 am |
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tochsia361
New Member
Cash: $ 0.85
Posts: 4
Joined: 11 Oct 2012
Location: alabama
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what do i open that with
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Mon Oct 15, 2012 4:02 pm |
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