3 ms·

We’ve refinanced our previous house 4 times, between 2010 and 2013, bringing the rate down from 5.75% to 3.625%. We did it as soon as the rate dropped another

• judge2020 3y ago
  Did you actually save a lot of money from doing this? Those refinance fees and origination fees can be pretty hefty, typically 1% of the value plus fees like credit score, appraisal, recording, etc.
  • bombcar 3y ago
    It’s quite easy to do the math (you can find a spreadsheet or setup your own) and it will give you an exact date for when one option passes the other(s). We had a worst-case scenario where a highish fixed rate was underwater for quite awhile, but when it finally wasn’t the payoff time for a refinance at a lower rate was in the matter of one or two months (the monthly payment got cut in half or so).
  • JoBrad 3y ago
    I saved enough from my last refinance to double my car payment. Paid it off early.
    • maxerickson 3y ago
      That's seemingly cash flow though. The other poster is asking if the aggressive refinancing paid off the transactions fees that it incurred.
  • tverbeure 3y ago
    Absolutely. You need to find a broker who's willing to eat most of the costs. That's easier in the Bay Area where mortgages are high dollar so that they still make enough money to make it worthwhile. I don't have closing statement with me, but the total cost is way lower than 1%. And, yes, I obviously had a spreadsheet to evaluate the different scenarios.