Timeline for Refinance when going to sell?
Current License: CC BY-SA 3.0
8 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Jan 16, 2015 at 2:17 | comment | added | Andy | Just to update, 1/3 of my current payment goes to interest and the rest principle. | |
| Dec 13, 2014 at 15:22 | comment | added | Andy | Its 5.24 for a 15 year, 3.48 for five. Of course that would be on top of my mortgage, where the refi would lower my current payments by almost 600 month. | |
| Dec 11, 2014 at 22:43 | comment | added | keshlam | Home Equity Line Of Credit strikes me as a better bet. Any idea what the total cost would be and how long it'd take you to pay off that loan? This is all formulas; you shouldn't have to guess. | |
| Dec 11, 2014 at 22:37 | comment | added | Andy | Understood, but I anticipate that there may need to be expensive repairs to be done before selling, so where to get the money from? I'd need some kind a loan in all probability, would a HELOC be a better option? | |
| Dec 11, 2014 at 20:24 | comment | added | Jay | @andy Once you pay a dollar of interest, that money is gone. When you pay a dollar of principle, then that is one dollar less you have to pay when you pay off the loan. That money is yours forever. | |
| Dec 11, 2014 at 2:56 | comment | added | keshlam | Paying mostly interest means the money just goes away, as opposed to actually paying down the loan and increasing your net profit when you sell. It may work, it may not work, run the numbers on exactly what you're planning. There is no universal answer, and if we go into all the details here I think it'll go out of scope. | |
| Dec 11, 2014 at 2:39 | comment | added | Andy | If I'm only going to have the refi for a couple of years (and I'm ok with only having 35% equity), why is it a bad idea that id be paying mostly interest? the renovations are for things that would hurt the sale, such as windows not closing properly (double hung, cannot be repaired) and such. | |
| Dec 11, 2014 at 2:19 | history | answered | keshlam | CC BY-SA 3.0 |