The Motley Fool Discussion Boards

Previous Page

Personal Finances / Buying or Selling a Home


Subject:  Re: Refi: 15-yr or 30-yr FRM? Date:  11/21/2012  10:11 AM
Author:  katiewa Number:  124436 of 128972

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!!!!

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us