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Refi questions

Mr Stubs

Mr Stubs

Taste my rainbow, bitches
Joined
May 19, 2020
Member Number
101
Messages
2,032
Loc
Land of liquid sunshine
So I looked into pulling money out of my mortgage and using it. I haven’t been super happy with what has been presented to me so I may be kinda out on that avenue.

So for shits and giggles I had the guy throw me out some other numbers.

Here is a pic of my chicken scratch ideas, what do you guys think of them?

C637D25C-D138-4076-B627-E9FCA44510B7.jpeg
 
So this is what goes through my mind.

A 30 year will take me 10.6 months to pay off from money savings and what I pay in principal. If I take that amount $800 and just straight up save it that’s $9600 per year.
 
Mr Stubs said:
So this is what goes through my mind.

A 30 year will take me 10.6 months to pay off from money savings and what I pay in principal. If I take that amount $800 and just straight up save it that’s $9600 per year.
Click to expand...


you need to look at interest savings, that is the real eye opener.

you need to decide how long you plan on staying there and if a refi makes sense

stubs.jpg
 
here is if you keep paying your extra $400. unless you plan on staying there a while, paying extra and NOT refi pencils out to the most savings in the short term.

if you plan on keeping it for the long haul, refi to a 15 while keeping up with the extra $400 savings you $20k and youll have the mortgage gone in 10 years

stubs-2.jpg
 
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Thank you very much for doing that. I’ve never had the ability to plug numbers into a calculator like that.

Its nice to know that my initial thoughts on refi is correct.
 
I don’t plan on being here long term. I became intrigued at the idea of being able to pocket savings and extra principal payments.

If my three yearish plan shakes out then I could have close to 30k in my pocket.
 
My problem with the fifteen is mostly me. Although I am able to make a $1900 payment per month right now, I just can’t make that obligation.

I have the firm belief that I cannot have more money going out per month than I can make on unemployment per month.
 
Mr Stubs said:
My problem with the fifteen is mostly me. Although I am able to make a $1900 payment per month right now, I just can’t make that obligation.

I have the firm belief that I cannot have more money going out per month than I can make on unemployment per month.
Click to expand...

Unemployment insurance was never designed to pay all your bills but to supplement your savings and/or liquid investments. Lots and lots of my friends in Vegas are really struggling now with all the service and entertainment industry shut down, and if they didn't have 6 months of bills saved up then shame on them. It's coming up on 6 months now, and if they did receive UI payments, (lots didn't due to being freelancers), then they should be good till the end of the year, but even that is no guarantee that the work will come back in any meaningful way.
 
Roc Doc said:
Unemployment insurance was never designed to pay all your bills but to supplement your savings and/or liquid investments. Lots and lots of my friends in Vegas are really struggling now with all the service and entertainment industry shut down, and if they didn't have 6 months of bills saved up then shame on them. It's coming up on 6 months now, and if they did receive UI payments, (lots didn't due to being freelancers), then they should be good till the end of the year, but even that is no guarantee that the work will come back in any meaningful way.
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Absolutely.

I do have a chunk put away for such a occasion. In fact I am this way do to the nature of my employment and the reality of going on and off unemployment depending on jobs.

Its part of my struggle being single, working in my profession, and making good money. I can afford things right now but the long term security is always questionable.

I have never been a good gambling man.
 
Mr Stubs said:
Absolutely.

I do have a chunk put away for such a occasion. In fact I am this way do to the nature of my employment and the reality of going on and off unemployment depending on jobs.

Its part of my struggle being single, working in my profession, and making good money. I can afford things right now but the long term security is always questionable.

I have never been a good gambling man.
Click to expand...

I get it, I know what you do. Gambling is no good, but having a plan is. If you have to take a 30 then so be it, but also look at 20 and 25 year options. I took a 30 on this place in 2016 and refied it on a 15 later that year, (Fucking Dodd Frank bill required 2 years on a job to eliminate PMI, even though we put down 22% and both had 800+ FICO's), then just this month re-fied on a 10. Yeah my payment went up a buck and a half, but the house is worth a grip now, and it will save me 2.xx years in payoff time, and $28k in interest. 2.5% with no points. Unbelievable opportunity IMO.
 
The only difference between a 30-year note and a15-year note is... a slightly higher interest rate and 15 more years of interest payments.

You will lose some monthly savings due to the higher interest rate on a longer note, but if
your cash flow in the future is that uncertain, go the 20 or 30-year route, and have the discipline of throwing extra money at the principal each month.
 
mobil1syn said:
here is if you keep paying your extra $400. unless you plan on staying there a while, paying extra and NOT refi pencils out to the most savings in the short term.

if you plan on keeping it for the long haul, refi to a 15 while keeping up with the extra $400 savings you $20k and youll have the mortgage gone in 10 years
Click to expand...
Could you post up a pic of what the 30 year at 3.38% would look like if $800 was put towards principal per month?
 
mobil1syn said:
you need to look at interest savings, that is the real eye opener.

you need to decide how long you plan on staying there and if a refi makes sense
Click to expand...

Out of curiosity, what program did you use for that?
 
Mr Stubs said:
Absolutely.

I do have a chunk put away for such a occasion. In fact I am this way do to the nature of my employment and the reality of going on and off unemployment depending on jobs.

Its part of my struggle being single, working in my profession, and making good money. I can afford things right now but the long term security is always questionable.

I have never been a good gambling man.
Click to expand...

Aren't you a lineman? I thought you guys never got laid off?
 
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