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  • Home Mortgage Refinance decision/options.

    Currently have a fixed 20-yr 4% %530K home mortgage that is 3yrs in (i.e. 17yrs left).

     

    Found a refinance rate of 2.875% !!! for a fixed 15-yr mortgage.

     

    Result would be trivial change in my monthly mortgage but likely a savings of approx. $70K over the course of the loan.

     

    Anything I'm missing?  I do need to find out about xfer costs/fees,etc. - what would be ballpark fair amount for that anyway, $2-3K for all costs/fees included?

     

    Thanks!

  • #2
    If you're planning on staying there past the breakeven point for costs, it makes sense. iow, probably break even in a few years - I would recommend planning to stay a min. of 5 yrs if you're going to refi. There are several good calculators online to figure out breakeven - Zillow has a very helpful one.
    Financial planning, investment management and CPA services for physicians, dentists, and medical professionals

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    • #3
      Great!  Yes.. I had calculated by doing the math on my own of $70K savings... zillows calculator states $63K (assuming $5K in closing costs)

       

      Thanks alot for that link share!

      And yes, we plan to stay in the home >10 more years

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      • #4
        Care to share on that 15yr?  We're kicking around a 15y since 4% 30yr currently and still 10-15yr out for planned retirement.  Best we've seen locally with 0pt and reasonable closing is 3.25

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        • #5
          Im awaiting confirmation on the 2.875% 15yr fixed from bethpage credit union (in NY) - but here is the link (click on 'mortgages')

           

          https://www.bethpagefcu.com/rates-calculators.aspx

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          • #6
            Can I complicate the original question a bit...

             

            I also have a loan on an occupier-owned medical office 9yrs left on a 15yr fixed at 4% rate (private mortgage loan, not with bank).

            I wonder if rather than trying to refinance this one - I could consider to go forward with the above refinanced home mortgage loan at 2.875% for 15yr-fixed and THEN:

             

            take out a HELOC and pay off the medical office loan?

             

            thoughts? Thanks!

             

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            • #7




              Can I complicate the original question a bit…

               

              I also have a loan on an occupier-owned medical office 9yrs left on a 15yr fixed at 4% rate (private mortgage loan, not with bank).

              I wonder if rather than trying to refinance this one – I could consider to go forward with the above refinanced home mortgage loan at 2.875% for 15yr-fixed and THEN:

               

              take out a HELOC and pay off the medical office loan?

               

              thoughts? Thanks!

               
              Click to expand...


              You'd be transferring a business debt and making it personal which I think doesnt make a lot of sense, but other wise nothing wrong with it. Then again a lot of practice loans make you put your personal assets at risk anyway, so maybe that doesnt matter.

              I would do whatever is cheapest and simplest.

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              • #8




                Can I complicate the original question a bit…

                 

                I also have a loan on an occupier-owned medical office 9yrs left on a 15yr fixed at 4% rate (private mortgage loan, not with bank).

                I wonder if rather than trying to refinance this one – I could consider to go forward with the above refinanced home mortgage loan at 2.875% for 15yr-fixed and THEN:

                 

                take out a HELOC and pay off the medical office loan?

                 

                thoughts? Thanks!

                 
                Click to expand...


                Interest pd on cash-out refi's are no longer deductible bg 1/1/2018.
                Financial planning, investment management and CPA services for physicians, dentists, and medical professionals

                Comment


                • #9
                  Yes, it seems the bank won't even do a 10yr fixed on a refinanced owner occupied biz mortgage anyway - unless its >$2mil. ha

                   

                  Just going to stick with the home mortgage refi.

                   

                  Thanks again.

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