Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

https://www.consumerfinance.gov/about-us/blog/cares-act-early-retirement-withdrawal/

 

I believe that literally anyone can justify it this way:

 

For the math gurus:
i'm really debating whether it would save me money to refi now with rates that low.

VA loan, we use my wife's VA benefit to avoid paying the funding fee for the loan
current 3.5 for $267k
currenty payment roughly $1600 on 20yr loan (have OUTSTANDING credit and no debt other than mortgage),

don't intend on being in this house longer than 4.5 more years (although may consider renting it out if the mortgage payment is low enough at that point).

if you dont mind sharing, what were your total costs to refi? I imagine many people tack them onto the loan but if i can pay out of pocket and come out ahead we could do that.

 

My original loan was $395k, which was paid down to about $390k. The total refinance costs were rolled in, and are right around $6k. This cuts the payment by about $140 a month, and reduces the interest over the life of the loan by about $49k. It's really only worth it if you're going to be staying a while. Also, I am exempt from the funding fee, that could have been a make or break on doing this. If you (or your wife) are 10% or higher service connected, you shouldn't have to pay the funding fee.

 

I’d guess if you plan to sell in under 5 years, you won’t have the time to make it worth it. If you keep it as a rental, then it would certainly be worth it.

 

I think to refinance a VA loan, the requirement is that the cost is recouped in savings within 3 years. So he will only be able to do it if it works out like that.

 

It appears MMM isn’t going to give me a better price. Seems very happy to truck along where’s it’s been all day

 

your refi was 6k? Eesh. Maybe won’t be worth it for us.

 

You’d need to check with your lender. Then you’d know for sure

 

My refi on 340K was like $1230. Was $385 in bank costs and .25% of the loan amount to Freddie and Fannie. Will "make that back" in about 11 months, but as noted its the tens of thousands saved on interest that really is the goal.

 

My goal with refi is dropping pmi 110/mo so my recoup time is hopefully lower but I’d have to be reappraised too I think.

 

I had know idea that’s what pmi ran. You should for sure look into whether you can refinance at the current rates and get rid of that, then you could save a good chunk each month. Doesn’t cost anything to have them show you the numbers and estimated closing costs

 

It varies - but rule of thumb is about 100/mo if you're using that to budget into things.

 

As mentioned below your post, the savings in interest is huge. For $6k, we'll save $49k if we live here for 30 years. It's also $140 a month that's saved. I don't pay a penny out of pocket to refinance either, it's added to the loan. I think it's worth it if the numbers make sense.

 

Fair. I looked at it quickly - an appraisal is part of refi, I'm fine with the current loan at 4.25%, and we are planning to move within a few years hopefully. Appraisal is about 500 bucks which would be recouped by December if it removes PMI. If I can get Pennymac on the phone (haven't tried much to be fair) I'll talk to them - see what I need to do to drop PMI. At least according to zillow/a few other real estate sites, our house has gone up in value enough that it should be at about 80% right now at reappraisal.

 

NOV tanked today. I'll have to consider NRGU strategy - sell it all now and wait for earnings, might tank later this week

 

It feels great!

 

Maybe, but it’s still right where it was a week ago Monday. It just built up to earnings, then dumped. It might build right back up when people remember it was supposed to be bad. It’s all a toss up

 

It's kind of surreal, I've been paying for it for 4+ years at this point. I couldn't even imagine getting rid of the mortgage!

 

Does this have similar requirements as the 72T program?