05-23-2007, 07:02 PM
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 Re: Why 30 year mortgages? "Foobar" <bamberbert[at]gmail.com> wrote in message news:1179943624.785055.200700[at]h2g2000hsg.googlegroups.com... - quote - > > > Now, there's a refi that makes sense. I purchased my house back when
It makes sense in all cases, as the term of the refinanced mortgage was> > interest rates were very high - mine was a 30 year at 13-5/8%, and that > > wasn't as bad as they got. 7 years into it, we refinanced to a 15 year at > > 6-7/8% and had lower payments than of the original mortgage. And we made an > > additional principal payment to make sure we wouldn't have a mortgage in > > retirement. > > It only makes sense if one applies the reduced payment to the current > mortgage. shorter than it would have been without the refi, in addition to saving a huge chunk of interest. The remaining term of the 30 year mortgage was 23 years, which I turned into a 15 year term with lower payments - a reduction in the term of the mortgage by 8 years. I could spend that savings on anything I wanted and still be better off. Elizabeth Richardson |
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05-23-2007, 06:21 PM
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| Re: Why 30 year mortgages? On May 23, 1:35 pm, "Elizabeth Richardson" <erich...[at]worldnet.att.netwrote: - quote - > "Douglas Johnson" <p...[at]classtech.com> wrote in message
It only makes sense if one applies the reduced payment to the current> news:rkj853hk1svjlr6u8dq5o6ej5hksb9d4gu[at]4ax.com... > > "Andrew Koenig" <a...[at]acm.org> wrote: > > > Let's suppose I'm 15 years into an 8% 30-year mortgage, and I have the > > > opportunity to refinance at 6% for 30 years. Fixed rate in both cases. > > Or you might have to option to refinance for 15 years for 5 5/8 percent. > Now, there's a refi that makes sense. I purchased my house back when > interest rates were very high - mine was a 30 year at 13-5/8%, and that > wasn't as bad as they got. 7 years into it, we refinanced to a 15 year at > 6-7/8% and had lower payments than of the original mortgage. And we made an > additional principal payment to make sure we wouldn't have a mortgage in > retirement. > Elizabeth Richardson mortgage. Most refis don't work that way. Gee, I can save 300.00 a month. Now we can buy that car we talked about :-) |
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