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6

Assume you could do this. Where would you get the money to pay off the remaining loan? And if you want some liquid cash out of this operation, where does that cash come from? The answer is that you would take a new real estate loan. And that would involve credit scores, a mountain of paperwork, appraisals, inspectors, and whole load of other BS, and in the ...


-2

See above. A 30yr mtg with interest rate X% paid off in 15 yrs will be equivalent to having taken out a 30 year loan on the same date at lower than X% and very close to the rate of what a 15-yr loan would have been on that same date. Difference is so marginal as to not merit consideration, but provides much risk avoidance. Do I care that I paid 3.875% for 15 ...


-2

You are ALL missing the point. He is looking for the "equivalent"rate AFTER paying off the loan early. That is, on a 30 year loan at x% taken to term, I paid x%. That is not debatable. If I pay off the loan in 20 years, it is the "equivalent" of having taken out the loan ORIGINALLY at a much lower rate of .8x% or what have you. If I ...


4

Generally, the amount of paperwork required for a refinance is less than the amount of paperwork required for a purchase. There are a lot of variables including COVID-19 relaxations in appraisal requirements and various appaisal waiver opportunities that your broker or lender may be able to help you qualify for. If you're trying to take money out of the ...


1

I don't believe these proposed answers are correct; I match your numbers, and verified with a couple of online calculators. I get a savings of around $10k (after factoring in the $5k cost, varies slightly depending on if you finance this amount or not, but never getting to their numbers).


2

A non-money related thing to consider is what happens after settlement day. Some lenders sell your loan servicing, which means that a few weeks to a few months later you will be sending your money to a different address who will have a different customer service staff. I am amazed whenever I hear that this switch happens without a problem, because in my ...


1

Fees, especially "Finance fees": monthly or yearly fees you must pay. Sometimes based on the balance of the loan. I've mostly seen this on vehicle financing from dealerships. If they say your loan is 2% interest, but that you have to pay a monthly/weekly/yearly/recurring "finance fee" of $5 per every $100 finances, you're really paying 7%...


2

Depending on the type of loan there may be features that are not as common as for, say, a mortgage. Some things that come to mind: Fixed vs Variable rate Length (term) of loan Closing costs (although this is incorporated in the APR) "Deferred" interest that becomes due of you miss a payment (more common on "0%" loans) "Prepaid ...


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