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Post some particulars then. Maybe not of your terms but something like it to see how to reduce the payment and cut the term in half.
by cwilkes 9y ago
Post some particulars then. Maybe not of your terms but something like it to see how to reduce the payment and cut the term in half.
- sidlls 9y agoThat's easy: let the new rate be r' and the original rate be r. Then choose r'/r < 1/2 by a sufficient amount. For example: let (P; r; t) be ($100,000; 8%; 30 years). The payment is around $740/mo. Now take (P; r; t) equal to ($100,000; 3%; 15 years). The payment is around $700/mo. You can adjust for the fact that some months of repayment already occurred so the term reduction is to a new term greater than half the remaining periods on the existing loan and the present value (i.e. new principle) is smaller and bump r' up accordingly to achieve the same result. Either way it's hardly "impossible" and actually quite easy to do if there's a significant difference between the original loan conditions and the refinance/consolidation.
- MaulingMonkey 9y agoThe power of compound interest! For anyone else wishing to double check sidlls math: https://www.wolframalpha.com/input/?i=$100000+3%25+15+year+mortgage https://www.wolframalpha.com/input/?i=$100000+3%25+15+year+m... https://www.wolframalpha.com/input/?i=$100000+8%25+30+year+mortgage https://www.wolframalpha.com/input/?i=$100000+8%25+30+year+m...
- ams6110 9y agoSure but who is going to lend you $100,000 at 3% for 15 years, with no asset securing the loan? Again, the specific numbers of your situation would go a long way to shutting up the skeptics here. Either your initial rate was absurdly high, or you're exaggerating.
- josephjrobison 9y agoIf he's an MD or Engineering Phd from Standford, that's the security that SoFi originally innovated on right?