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Mortgage Refinance Question/Advice/Thoughts

Discussion in 'BBS Hangout' started by JayZ750, Oct 15, 2014.

  1. JayZ750

    JayZ750 Contributing Member

    May 16, 2000
    Likes Received:
    So I need to refinance my mortgage... not just cause rates are good... I have a short-term loan on the house, needs to be refinanced.

    So I started calling around yesterday since rates popped down.

    I am only about 40% levered on the house, so have an option to take cash out.

    Some options I'm considering:
    - Refi vs. Cash-Out Refi: I am considering just refinancing the current balance, or cashing out up to the conforming loan limit... would net me a decent chunk or so in cash. At the moment, I'm getting rate quotes that are the same either way

    - 30 year vs. 15 year. Best quote I have today is 3.625% on the 30 year, with about $1k in closing costs (which I could roll into the note). Best quote on a 15 year is 2.875% with about $1,600 in closing costs (again roll in).

    Intuitively it doesn't make a ton of sense for me to be so underlevered, so I might as well take cash out at such good rates. I can put it somewhere... a little nervous about the market for the next 6 months or so, but I various public/private investments I could make. Alternatively, paying less every month feels good!

    Same issue on the 30 year vs. 15. My gut says go 30, if I want to pay off quicker I can, and the cost of having the option to pay off slower being that 0.75% extra on rate isn't that bad when rates are so low anyway. Plus I have the extra cash every month to invest...Alternatively, I could do the 15 year, and would feel better in 5, 10, 15 years when I've paid off a lot more of the debt.

    So I'm leaning 30 year with the cash-out.

    Any opinions?
    #1 JayZ750, Oct 15, 2014
    Last edited: Oct 15, 2014
  2. SlvrBtl

    SlvrBtl Member

    Feb 22, 1999
    Likes Received:
    I am also considering refinancing my home. Which mortgage companies did you request a quote with?

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