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URL:  http://boards.fool.com/current-example-of-flexibility-issue-could-pay-30393268.aspx

Subject:  Re: Refi: 15-yr or 30-yr FRM? Date:  11/21/2012  10:11 AM
Author:  katiewa Number:  124436 of 127262

Current example of flexibility issue....

Could pay down $100K on house and probably be able to refinance it, saving $1000/month. However, then we would need to borrow money for the next three years to pay for college--by fourth year we would have saved up enough from the lower monthly payments to make 1.5 years of college payments. Borrowing for college is 6-9% with no grace period, and no interest deduction.

You have to run the numbers for yourself and your situation to know what makes the most sense for you. Spreadsheets are a wonderful tool!!!!

Kathleen
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