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Old 10-09-2019, 05:16 PM
Roderick Femm's Avatar
Roderick Femm is offline
Join Date: Jul 2005
Location: On the cusp, also in SF
Posts: 7,274

Should I re-finance?

My lender is offering a re-finance. The cost to me is $9,900, and due to a reduction in interest rate I will save $183 per month. The re-fi cost is, of course, rolled into the mortgage amount owed, and the clock will be re-set to 30 years; the current mortgage has about 27 years to go. (I am not interested in shortening my mortgage length by paying more per month, that would just be reducing the amount of money I have available to spend now for someone else's benefit after I'm dead.)

I don't need to save this $183 per month, in fact I doubt I will notice it. I am POd at my lender for pestering me on the phone about this (which I have told them) and for insisting that it was done for my own best interests; and I am somewhat reluctant to reward the pesterer by whatever amount his commission on the $9,900 is. But if it's a good deal and something I ought to do to be financially responsible, I will waive that consideration. I'm just not sure how to make the financial calculations to see if this is worth it.

I have an excellent credit score, by the way, and any damage to it by the lender's inquiry has already been done.


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