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Personal Finances / Buying or Selling a Home


Subject:  Re: Mortgage Date:  9/30/2019  11:57 AM
Author:  Rayvt Number:  129267 of 129287

You've posted over the years the times you refinanced. Just curious why you refinanced this time. I would have thought by now that you reached the point you can't get a lower interest rate.

The rate wasn't quite low enough to hit my normal threshold, but it was close. This time, unlike every other time and unlike my standard recommendation, I actually paid points (small though) and the fees. (FWIW, my standard for a refi is large enough lender rebate to cover all the costs & fees.)

BUT....instead of paying them in cash I had them rolled into the loan. Normally a bad idea financially. But the way to look at it is these costs get paid at the _end_ of the mortgage. Say these costs total $8,000. In 30 years, after 30 years of inflation this is only about $4,000 purchasing power.
And that's assuming that you are still alive at the end of the mortgage 30 years from now. Which if you are retired is probably a bad assumption. So those rolled-in costs will be paid by your heirs when they sell the place.
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