Northwest Fishing Reports

OK, since there is so much discussion on here lately regarding recessions..depressions,, shoes falling, Gold prices, "Fishing tackle hitting you in the head" etc. I am just curious as to how many people out there are refinancing homes right now, and what your thoughts are regarding the refinance issue?

I know the rule of thumb has kind of been if you can drop a whole percent (1%) then it's time to do it. For me I'm not sure I agree with that. To me that thinking is only thinking about your month to month bottom line. It means to me that you are living by the thought of, that you can save X amount on the monthly mortgage with the 1% drop in rate... so just do it.
What pisses me off is that every time you re-fi, you go right back up to a new 30 year loan.***** OBVIOUSLY ONE CAN RE-FI FOR A 15 YEAR LOAN,*** but odds are you are not coming down on your monthly payment when you shave it into a shorter loan. So back to my point... You start your 30 year......5 years into it you re-fi, you save a few bucks each month. You look at the calendar and you say, "Dang this heap won't be paid off now until I'm X age.. a few years go by, it's 2011. You look up and say "DAMN, these are some low rates." But... if I go back into a 30 year, and save a few bucks,, I'll still be EVEN OLDER when this heap is paid off.
My thoughts right now are to say screw the monthly savings, keep widdling down on the years of this loan. I'm at 5.25%, today I heard talk of 3.7%. That can't be true....

Do you believe that it is always more importan to save 150.00 bucks each month by a re-fi,, or just suck it up and count the years off the loan?

If you can make a couple of extra payments each year all of it goes to the principle. This will pay off your loan several years early on a 30 year loan. Kills two birds with one stone. Pays off your loan early and saves you money on total interest paid. I couldn't do this until the kids were through school and on their own. Tough times now the way the economy is I don't know how young people can buy houses..........I guess they can't and that explains a lot of the foreclosurers. Boeing Credit Union has a killer deal going now for those that can qualify. My guess is not many will.

In the early 90s, I refied to a 15 year because it saved an additional point in comparison to a refi at 30 years. I just threw everything I had at that debt and paid it off in about nine years. Paying it off early was the best way to go for me. My refi accomplished nothing since I paid about a point to do the refi at that time.

Jerry H wrote:If you can make a couple of extra payments each year all of it goes to the principle. This will pay off your loan several years early on a 30 year loan. Kills two birds with one stone. Pays off your loan early and saves you money on total interest paid.

Yes, of course i realize making an extra payment or two towards principle. We all get two months during the year where you get an extra pay period during the standard "Two pay period month" Usually April and Nov. this is a good time to do the extra principle payment thing. (If you are self employed, sorry to bring that up)
So maybe what you are saying is that even on a 30 year loan,, making the extra payments brings it down to around 23 yr/typically. I just want to hear support for not re/fi 'ing again to 30 years.

The other consideration is the front end payments go almost all toward interest. If I had to tack back the first 5 years onto my 30 year loan I wouldn't be very quick to jump.
the 15 year though might attract me more if payments wouldn't be too much difft. All those danged dastardly fees they throw in those refis are nasty as rain on an August night.
Hope that move some fish around.

If it's support that you want, then, I can do that! The peace of mind that having my mortgage paid off was HUGE! I wouldn't have done it any other way.

Don't lengthen your mortgage term unless you have to.

Since conditions change though, there are different terms than when I refied. There is a possibility that you can refi to a fewer number of years, at a lower interest rate AND your monthly payment is almost unchanged.

The goal is to pay off your home before retirement so you have some great years to enjoy that "extra income".

I had that one paid off at about 35 yrs old.

Yes! Enjoy the extra income since social security may evaporate by the time I reach that age on paper (mentally, I'm there dude).

PS- what is the good deal BECU has going? I might look into that.

I've been considering a refi as well since it is right at about a point for me. From a total interest/length of loan perspective you really need to do the math to see what your "break-even" point is and think will you be in the home that long?

The other consideration is cash flow. Paying off your home sooner isn't going to help if you're struggling now and doing a refi save you $200 a month. Sometimes the short term point of view is more important, sometimes we have the luxury of taking the long view.

Also, what is your long term vision? My plan is to move away from King county in 5-10 years (the sooner the better!), so paying off the home isn't a goal for us. The house will be sold and we'll downsize into a smaller home since the kids will be long gone.

A friend of ours had asked their bank to modify the rate of her loan. The rate wasn't as good as the bottom rates, but she didn't lose any time or pay any closing costs.

you can make your loan shorter by paying extra principal on it. That way you get the percentage rate you want and the payoff period.

I'm at 3.125 percent.

I was wondering the same thing. Assuming that I can qualify for the refinance (bought the house 4 years ago and finance issues with myself and my wife has changed a lot since we bought the house). I wouldn't want to re-extend the loan to 30 years but rather have the rate modified. I don't like the idea of having to pay closing costs especially if it eats up the gain I'd achieve by taking the lower rates.

What spooks me is all the talk of taking away that tax credit we home owners have.

Gonefishing wrote:What spooks me is all the talk of taking away that tax credit we home owners have.

You don't make a 7 figure income, that's why![sneaky]

Gonefishing wrote:I was wondering the same thing. Assuming that I can qualify for the refinance (bought the house 4 years ago and finance issues with myself and my wife has changed a lot since we bought the house). I wouldn't want to re-extend the loan to 30 years but rather have the rate modified. I don't like the idea of having to pay closing costs especially if it eats up the gain I'd achieve by taking the lower rates.

What spooks me is all the talk of taking away that tax credit we home owners have.

gonefishing- ya that tax credit is only one of many potential targets we will rpobably see getting scoped out.

you need to read the language of the proposed legislation to remove mortgage deductions. The language reads only 2nd home and for incomes over $500K (approximately).

Last I checked my yearly income was a tad lower.

tough question ... can you qualify ? ... you think... things are tough ... can your house pass a THOROUGH inspection ?? ... can you afford to fix EVERY drip'n fawcet .. outlet or switch ??? ... hows the roof/gutters/paint/calking ? .. mold ? ...septic/ sewer in good condition ??

your household income/debt/credit rating change ??? ... mortgage insur ???... rates have changed ... do you know what it's REALLY worth ?? underwater ???? ...yea there's guna be fees ...bunch of 'em ... and hassles ..and inspecters and apraisers and septic guys and any repairs you gotta do/have done ...on 'n on 'n on it goes... guna change lenders ??? ...
you gotta decide what's worth what...

i'll tell ya what tho ... right now .. I AINT DO"N NUTHIN !!!!... i'm safe here ... i can afford my payments .. i couldnt rent this house 'n land for what i'm pay'n ... i'm not sell'n .. prices are crap .. and sell'n is as big a hassle as refi'n !!!!! ....and i gotta live somewheres ...(my boat aint big enough ..yet)

the other thing is... you dont know what's going to happen ...there's all kinds of rumors ... and rumors of rumors ... about the fed .. new rules.. or force'n the banks to offer some kinda deal ... us good folks who arnt in trouble or have'n probs might actualy get a break !!!!...

anyways i'm in a wait see mode ... i've got a whole bunch of stuff i'd like to do.. maybe start a biz or 2 ... maybe buy some more land or a rental ... buttttt no one knows what the hecks next good or bad ... crash or boom ...recession or depression ....I'M SAFE.. i aint do'n nuthin !!! ... i'm guna wait see...

my 35 cents worth of joy 'n good cheer !!! .. lolol.. DOG

HEY !! u see that ?? over there >> ???
was that another shoe drop'n ???