Comments on: Save Monthly In a Refinance by “Resetting the Clock” http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html The journey of one young family out of debt and into building wealth Wed, 07 Jul 2010 17:45:44 -0700 http://wordpress.org/?v=2.8.5 hourly 1 By: Sandy http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html/comment-page-1#comment-2138 Sandy Wed, 11 Mar 2009 14:36:50 +0000 http://www.thatonecaveman.com/?p=891#comment-2138 It's fine that the clock is "reset". When I refinanced the HELOC with my mom the clock reset to 25 years but I have NO intention of taking that long to pay. I make the regular payments which dropped over $150 but I also make snowflake payments as well, reducing the number of years that it will take to pay. I hope to repay the full amount in half as much time. This just gives me what I call breathing room. If you can squeeze in a few extra bucks here and there it really ads up. Good luck! It’s fine that the clock is “reset”. When I refinanced the HELOC with my mom the clock reset to 25 years but I have NO intention of taking that long to pay. I make the regular payments which dropped over $150 but I also make snowflake payments as well, reducing the number of years that it will take to pay. I hope to repay the full amount in half as much time. This just gives me what I call breathing room. If you can squeeze in a few extra bucks here and there it really ads up.

Good luck!

]]> By: Trevor http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html/comment-page-1#comment-2135 Trevor Wed, 11 Mar 2009 03:34:34 +0000 http://www.thatonecaveman.com/?p=891#comment-2135 Great post. Even that $50 can go a long way! I know exactly what you're talking about. By the way, I found you via Wisebread's top 100 pf blogs. Congrats for making the list! :) Great post. Even that $50 can go a long way! I know exactly what you’re talking about. By the way, I found you via Wisebread’s top 100 pf blogs.

Congrats for making the list! :)

]]> By: That One Caveman http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html/comment-page-1#comment-2125 That One Caveman Fri, 27 Feb 2009 13:48:14 +0000 http://www.thatonecaveman.com/?p=891#comment-2125 Mine wasn't a HELOC, it was a traditional home equity loan. Its rate was 8.375%. My mortgage was at 6%. If you can get a rate that over a point less than your current rate, it may very well be worth looking into. Mine wasn’t a HELOC, it was a traditional home equity loan. Its rate was 8.375%. My mortgage was at 6%. If you can get a rate that over a point less than your current rate, it may very well be worth looking into.

]]> By: Scott @ The Passive Dad http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html/comment-page-1#comment-2122 Scott @ The Passive Dad Wed, 18 Feb 2009 21:02:18 +0000 http://www.thatonecaveman.com/?p=891#comment-2122 That's great that you were able to get a conforming loan for under 5% and consolidate your HELOC. Was your HELOC fixed at 8%, because I've noticed some banks advertising them at under 4%. I'm still on the fence about refinancing as we have 2 years left at 5%. That’s great that you were able to get a conforming loan for under 5% and consolidate your HELOC. Was your HELOC fixed at 8%, because I’ve noticed some banks advertising them at under 4%. I’m still on the fence about refinancing as we have 2 years left at 5%.

]]> By: That One Caveman http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html/comment-page-1#comment-2101 That One Caveman Wed, 21 Jan 2009 21:29:19 +0000 http://www.thatonecaveman.com/?p=891#comment-2101 That's a shame. Property values in my area have actually increased and finishing my basement increased my home's value by another $11,000. My loan-to-value is now a shade below 78%. Considering your situation, I believe waiting was your best option. A 3-year payback <em>with</em> PMI is just not a good deal. Hopefully things will rebound in your area sooner than later. It's not likely that rates will go up soon - at least not much - so you should have time to wait it out. That’s a shame. Property values in my area have actually increased and finishing my basement increased my home’s value by another $11,000. My loan-to-value is now a shade below 78%.

Considering your situation, I believe waiting was your best option. A 3-year payback with PMI is just not a good deal. Hopefully things will rebound in your area sooner than later. It’s not likely that rates will go up soon – at least not much – so you should have time to wait it out.

]]> By: Pete http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html/comment-page-1#comment-2100 Pete Wed, 21 Jan 2009 21:20:32 +0000 http://www.thatonecaveman.com/?p=891#comment-2100 I just posted about my refinance story today - we tried refinancing our 6.5% mortgage (down to 5%), but since the home values in our area have dropped so drastically in the last 2 years it would have meant adding another $150 to the mortgage payment for Mortgage insurance. Our closing costs were around $3200 or so, which were rolled into the loan. What would have been a $230/month savings on our mortgage turned into a $75/month savings and because of PMI and it would have taken over 3 years to pay back the closing costs. we're not 100% sure we'll be there that long, so we ended up not refinancing. Now we're just waiting for the market, and house values, to rebound a bit. I just posted about my refinance story today – we tried refinancing our 6.5% mortgage (down to 5%), but since the home values in our area have dropped so drastically in the last 2 years it would have meant adding another $150 to the mortgage payment for Mortgage insurance. Our closing costs were around $3200 or so, which were rolled into the loan.

What would have been a $230/month savings on our mortgage turned into a $75/month savings and because of PMI and it would have taken over 3 years to pay back the closing costs. we’re not 100% sure we’ll be there that long, so we ended up not refinancing.

Now we’re just waiting for the market, and house values, to rebound a bit.

]]> By: That One Caveman http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html/comment-page-1#comment-2097 That One Caveman Tue, 20 Jan 2009 02:39:37 +0000 http://www.thatonecaveman.com/?p=891#comment-2097 If you just did a refinance a year ago, I wouldn't do another one unless you have significant savings. It could take a long time to pay yourself back the $3,000, so there's no sense in adding more to that unless you can do a streamline refinance. Our closing costs were rolled into the mortgage, but I believe they were around the $2,500 range. I'll be "paid back" in 10 months with that difference. If you just did a refinance a year ago, I wouldn’t do another one unless you have significant savings. It could take a long time to pay yourself back the $3,000, so there’s no sense in adding more to that unless you can do a streamline refinance. Our closing costs were rolled into the mortgage, but I believe they were around the $2,500 range. I’ll be “paid back” in 10 months with that difference.

]]> By: Travis @ CMM http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html/comment-page-1#comment-2096 Travis @ CMM Mon, 19 Jan 2009 22:02:10 +0000 http://www.thatonecaveman.com/?p=891#comment-2096 Hmm, I just refinanced last spring but with rates at an all time low I might think about doing it again. Can you tell me what it cost you to refinance? We went through a mortgage company last time and got a FHA loan which gave us a better interest rate, but it ended up costing around $3000 I think. Not sure if I want to add another chunk onto what I already owe. Hmm, I just refinanced last spring but with rates at an all time low I might think about doing it again.

Can you tell me what it cost you to refinance? We went through a mortgage company last time and got a FHA loan which gave us a better interest rate, but it ended up costing around $3000 I think.

Not sure if I want to add another chunk onto what I already owe.

]]> By: Ron@TheWisdomJournal http://www.thatonecaveman.com/2009/01/save-monthly-in-a-refinance-by-resetting-the-clock.html/comment-page-1#comment-2094 Ron@TheWisdomJournal Mon, 19 Jan 2009 13:39:12 +0000 http://www.thatonecaveman.com/?p=891#comment-2094 We're looking to refinance as well. I originally got a 7 year balloon amortized over 30 years at 5 percent. Since we're about 5 years in, I've thought it would be prudent to go ahead and refinance since in two years, who knows where rates will be. Thought about a 15 year, but with another 30 year, I have some monthly flexibility that, given the surrent state of the economy, I'd like to keep. We’re looking to refinance as well. I originally got a 7 year balloon amortized over 30 years at 5 percent. Since we’re about 5 years in, I’ve thought it would be prudent to go ahead and refinance since in two years, who knows where rates will be.

Thought about a 15 year, but with another 30 year, I have some monthly flexibility that, given the surrent state of the economy, I’d like to keep.

]]>