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    Home Refinance Question

    Would you refinance from a 30 year term to a 15 year term if you were getting the same rate? Is there a benefit in doing this?

    #2
    No-- just pay extra principle to equate the payment and you're in the same boat. Refinancing is going to be a headache and cost you closing costs.
    Also, like car loans, typically a shorter term should get you a lower rate.

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      #3
      I see no benefit to doing that. Refinance to a 15 year and you are locked into the bigger payments and you’ve had to pay closing costs. Keep the 30 year and pay on it like its a 15 year and it’ll come out the same. You also won’t be locked into those bigger payments so if you get laid off and need to make a smaller minimum payment you still can.

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        #4
        Depends...how long you been paying on the 30

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          #5
          Originally posted by meltingfeather View Post
          No-- just pay extra principle to equate the payment and you're in the same boat. Refinancing is going to be a headache and cost you closing costs.
          Also, like car loans, typically a shorter term should get you a lower rate.
          This....just make extra principle payments when times are good and you can cut the life of the loan way down. When times are tough you are not automatically on the hook for that bigger note you would have on a 15 year re-fi.

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            #6
            Originally posted by Death from Above View Post
            Depends...how long you been paying on the 30
            7 years

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              #7
              Home Refinance Question

              Only reason to refi to a 15 would be to lower your interest rate, and if you can recoup closing costs in under 2 years. If you pay a 30 like a 15, it will pay off in 15.

              When we looked at it we were going to be saving 6500 per year, so closing costs would be recouped in about 8 months. The house appraised for $60K under what it did when we bought it, so we would’ve had to pay PMI because it put our equity under 20%. That said, it’ll be paid off in 3.5 years anyway. Can’t wait to be completely debt free with no mortgage.

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                #8
                Look at your amortization schedule---see what next month's payment is in terms of interest and principal--and add 2 or 3 month's principal to your check and send it in, but make sure you specify the overpayment is to be applied to principal only. I found out the hard way (once) that if you don't specify, they'll apply some of your extra payment to their interest.

                Just keep doing this each month that you are able, and see how fast that note shrinks!!!! One of the major and best ways of paying down debt. Your tax refund is another source of funding to do this if you haven't adjusted your withholding to get your refund/tax bill to +/- a couple of Benjamins.
                Last edited by dustoffer; 09-27-2019, 05:56 PM.

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                  #9
                  I wouldn’t bother with a refi unless a lower rate is involved. Even then, do the math to make sure the interest savings will be more than appraisal, title, origination fee, etc.

                  Like others have said, just make special principal payments to pay it off in 15 years.


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                    #10
                    Originally posted by TexasAg2002 View Post
                    Would you refinance from a 30 year term to a 15 year term if you were getting the same rate? Is there a benefit in doing this?


                    Absolutely not, zero point in paying closing costs just to retain the same rate for a shorter term. If you’re interested in refinancing I would shop rates and fees and use a break even calculator to see if it’s worth it or not. We move too often to ever make money from a refi.

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                      #11
                      Originally posted by TexasAg2002 View Post
                      7 years
                      So refi would be a 23 year versus a 15 year? Same rate? Any idea on closing costs?

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                        #12
                        No point at all in doing a refi for the same rate. Pay it like a 15 if you want and save the costs


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                          #13
                          No way Jose.

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                            #14
                            Take your current balance and pay on it like you have 15yrs left. Like everyone has said above. The only time you refi is if the rate makes sense(taking closing costs into account).


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