Doing some calculations

| 1 Comment

Had a meeting to look at various refinancing options, and I was a bit surprised yet disappointed as well. It seems that if I go for long term security (fixed rate) the amount I can save monthly is not earth shaking. I was hoping for more, but I guess that only is possible if I'm willing to take some risk and allow for possible rises.

When we took out our mortgage about 5.5 years ago - has it only been that long? - we (the ex and I) both decided to play it safe. I still (partially) feel the same way, even though there are benefits for taking risks. Ain't there always?

The good thing is that in my case, the bank would almost without a doubt accept my application, and have no additionnal requirements such as opening an account with them, using their insurance offers and such. Which is a great thing because I'd hate to change banks, account numbers and things like that. And taking on another account and bank just for the mortgage doesn't make sense, I've got plently of accounts and banks do deal with as it is.

Hm... I need some input of you people - keep in mind my current monthly payment is 534.76 :

Option 1 :
Case A : refinance and pay 508.90 monthly for 15 years (fixed)
Case B : refinance and pay 463.73 monthly with possible rise to 537.74
Case C : refinance and pay 460.65 monthly with possible rise to 548.53

Option 2 :
Case A : Refinance + quite some cash, pay 461.21 monthly for 15 years (fixed)

Option 3 :
Case A : Refinance and pay 370.76 with possible rise to 467.31 (20 years)
Case B : Refinance and pay 373.96 with possible rise to 454.81 (20 years)
Case C : Refinance and pay 429.64 for 20 years (fixed)

I've already scrapped the options I won't consider (either because they are too long term, or the monthly payment could rise to much), but I left them in to give you a complete list of options.

1 Comment

you have my input, on mail
dunno if it helps , but i sure hope so

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This page contains a single entry by ServMe published on October 14, 2004 5:59 PM.

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