Comments on: Running through payback time on a mortgage refinance

By: OW

OW — Sun, 15 Nov 2009 04:24:06 +0000

the calculation above is fundamentally flawed – just because principal is being paid off sooner doesn’t mean that money is being saved

By: Heather Mortgage Modification

Heather Mortgage Modification — Wed, 02 Sep 2009 16:15:16 +0000

I love this information on this article. Many people should know how to do this because it has saved us thousands of dollars just using the formula with our cars and with our last house. Thanks for putting this out there for the consumers to learn about.

By: Vickie

Vickie — Thu, 16 Jul 2009 15:35:00 +0000

Very good article. I think that something people need to take a serious look at is how long they are planning to stay in the home. Since the average person stays in a house about four years, they should use your method to see how long it would take them before they get ahead with the refinancing and then compare it to how long they plan to stay in the house.

By: divinejohnson

divinejohnson — Thu, 05 Feb 2009 07:43:11 +0000

Yeah its true what ever you have stated above. I think if you think of any financial crisis so you can get help from many sites, one site which I know is http://my-bailoutcash.com/, it helps you to control your financial crisis.

By: Loan Modification

Loan Modification — Mon, 26 Jan 2009 06:51:50 +0000

Hey, thanks for posting this. I really appreciate it. Keep it up! A house is the largest asset you may ever own. LOL.

By: fern

fern — Wed, 21 Jan 2009 22:33:38 +0000

what if, under your current prepayment schedule, you can pay off the rest of your mortgage in 6 years. A refinance just wouldn’t make sense, would it, unless you were willing to extend your loan term, and who’d want to do that?

Yeah, if i lost my job i’d definitely have to stop the prepayments, but then, too, voluntarily making prepayments instead of being forced to make them gives me more flexibility when i need it.

By: AmericasChoiceCredit

AmericasChoiceCredit — Tue, 20 Jan 2009 19:12:03 +0000

This was really a great post, and this blog is really boosting my knowledge in the financial industry which is a great help as I run several credit websites, making it very important to get all the up to date finance info I can. Good luck to everyone in the new year.

P.S. I definitely recommend subscribing to this blog’s feeds, they are a wealth of information.

By: Stacey

Stacey — Fri, 16 Jan 2009 16:15:55 +0000

About the interest tax deduction: Check out your current amortization schedule, and figure out exactly how long you can itemize with your current loan. We have a relatively small mortgage (130k), and will only be able to itemize for about the first 4 years. If we prepay, which we plan to, we’d only get tax savings for 2-3 years.

But really – who wants to pay $10,000 in interest to save $3,500 in taxes? And that’s only if you’re in the top tax bracket. I’d rather pay less interest overall and skip the tax “savings.” Even if you can’t itemize, you still get the standard deduction.

Refinancing really is a complicated puzzle! Thanks for the post.