Reply Hey Mom! Learn more about the Gerber Life Insurance Grow-Up Plan!
 
Thread Tools Display Modes
Old 03-29-2013, 05:40 PM   #1
cyndyinohio's Avatar
cyndyinohio
Registered Users
seller
 
Join Date: Dec 2007
Posts: 1,003
Should I refinance???? HELP!! Advice needed!

Right now I have 13 years left on a mortgage with a $992 payment (3.785 percent I think). I am thinking of refinancing for 30 years to lower my monthly payment to $630 (I think the rate would be 3.5.)

Our income took a big nosedive recently, and since I really want to keep staying home and homeschooling my kids instead of trying to earn more I thought this might be a good idea. But it does stretch our mortgage out for a lot more time.... I don't think this house will be something I stay in forever, though, so maybe that makes a difference? It has 2 acres and I'm not sure I'd want to do all the maintenance on it myself.

I'm not sure if I should just try to earn more instead of refinancing? Right now I just sell things here and there on eBay, but I could try to do more of that and still stay at home and homeschool.

Any thoughts???

TIA!

Advertisement


Last edited by cyndyinohio; 03-29-2013 at 05:45 PM.
cyndyinohio is offline   Reply With Quote
Old 03-29-2013, 05:56 PM   #2
MommyLyssa's Avatar
MommyLyssa
Registered Users
seller
seller
 
Join Date: Oct 2009
Location: Mass
Posts: 5,471
My Mood:
Re: Should I refinance???? HELP!! Advice needed!

I would start looking for ANY other options. Become thrifty woman first. I personally feel a mom being at home is important, and I am going to take a guess you do as well

To refinance, you are essentially tripling how much you paid for your house than how much it is worth. I couldn't imagine losing 17 years of payments already made, to start all over again for a $350 a month difference. Try selling more, swag it up (I am on track to make close to $100 this month and I don't spend much time on it, which is nuts!), thirft more.

Everything I said is probably duh and well known, but thought I would throw that out there.

I would find a calculator somewhere and just see how much more your house would end up costing you to change now (what would you be paying in interest after 47 years??- My husband and I were amazed that our 76k house would cost us well over 150k at the rate we were going. (we are now on a mission to pay it off in 7 years, and trust me, he doesn't make much!)
__________________
Alyssa- Wife to my love, Mama to three bigger littles, my angel, and expecting our little Rainbow Christmas 2015!!

Owner and creator at https://www.etsy.com/shop/AllClothedinScarlet for modest, durable, and out of this world gorgeous dresses!
MommyLyssa is online now   Reply With Quote
Old 03-29-2013, 06:03 PM   #3
Hungry Caterpillar's Avatar
Hungry Caterpillar
Registered Users
seller
seller
 
Join Date: Sep 2011
Location: Southern California
Posts: 5,270
Re: Should I refinance???? HELP!! Advice needed!

From the payment you are paying now, what portion are you paying to principle and what portion to interest? For the new payment, what would those numbers be? Look at it that way.

I wouldn't refinance. It's not a large enough rate change.

Did you ask about a 15 year mortgage? What rate you would get there? That may be worth investigating, and then check the principle/interest portions against what you are paying now.
__________________
Andrea
Mama to B and E, Wife to E
Parenting with Hugs and Terror since 2011
Hungry Caterpillar is offline   Reply With Quote
Old 03-29-2013, 06:12 PM   #4
wolffie
Registered Users
seller
 
Join Date: Jul 2009
Posts: 2,228
Re: Should I refinance???? HELP!! Advice needed!

Quote:
Originally Posted by Hungry Caterpillar View Post
From the payment you are paying now, what portion are you paying to principle and what portion to interest? For the new payment, what would those numbers be? Look at it that way.

I wouldn't refinance. It's not a large enough rate change.

Did you ask about a 15 year mortgage? What rate you would get there? That may be worth investigating, and then check the principle/interest portions against what you are paying now.
I agree with this. I wouldn't want to add on all those years.
__________________
Mama to ds '08, dd '10, due w/#3 5/13! wife to Missing my angels 6/07, 10/07, 3/12
Let's swag! SWAG friends!
wolffie is offline   Reply With Quote
Old 03-29-2013, 06:14 PM   #5
omahamama731's Avatar
omahamama731
Registered Users
seller
 
Join Date: Jul 2010
Location: Omaha, NE
Posts: 296
My Mood:
refi to 15 or not at all
__________________
Wife to my hubby since 2004, SAHomeschoolMommy to DD1 9/2006, DS1 11/2008, DS2 1/2011, DD2 7/2013
omahamama731 is offline   Reply With Quote
Old 03-29-2013, 06:16 PM   #6
JellEBeanDesigns's Avatar
JellEBeanDesigns
Registered Users
seller
seller
 
Join Date: Mar 2008
Posts: 6,741
My Mood:
Re: Should I refinance???? HELP!! Advice needed!

I would not refi, I would work on saving money and then bringing in a second income from home
JellEBeanDesigns is offline   Reply With Quote
Old 03-29-2013, 11:02 PM   #7
isabelsmummy
Registered Users
seller
 
Join Date: Sep 2009
Location: Vancouver, BC
Posts: 3,816
Re: Should I refinance???? HELP!! Advice needed!

I think it could be a good idea if it were temporary. There is no reason why when your income increases again you can't either refinance back to a shorter amortization or just start making lump sum payments against the principle.

Additionally, like you said, if this is not your forever house and you think it's possible you will sell in a couple of years then a few years of lower payments against the principal are not the end of the world.

One thing to consider I think is it is possible you could end up in a situation where you were upside down on your mortgage and you wanted to sell.

I've spend a lot of time thinking about this type of thing because I'm trying to figure out if we should do it!

Last edited by isabelsmummy; 03-29-2013 at 11:03 PM. Reason: spelling
isabelsmummy is offline   Reply With Quote
Old 03-30-2013, 05:14 AM   #8
KrisM
Registered Users
seller
 
Join Date: Aug 2006
Posts: 2,186
Re: Should I refinance???? HELP!! Advice needed!

Quote:
Originally Posted by isabelsmummy View Post
I think it could be a good idea if it were temporary. There is no reason why when your income increases again you can't either refinance back to a shorter amortization or just start making lump sum payments against the principle.

Additionally, like you said, if this is not your forever house and you think it's possible you will sell in a couple of years then a few years of lower payments against the principal are not the end of the world.

One thing to consider I think is it is possible you could end up in a situation where you were upside down on your mortgage and you wanted to sell.

I've spend a lot of time thinking about this type of thing because I'm trying to figure out if we should do it!
I agree with this. We went from a 4 years into a 15 year mortgage and refi'd to a 30 year. The economy was bad and we wanted to back the difference in payment. We banked it for about 6 months. Since then, we pay at least what we were on the 15 year mortgage. Since we're also at a lower rate, we're easily ahead of where we would have been had we not refi'd. The refi was 4 years ago now. We've been in this house 7.5 years and have 2.5 to go at most to pay off the mortgage, so 10 years total on it.

So, it can work and not be detrimental.
__________________
Kris
Mom to 3 wonderful kids.

Earn gift cards or paypal at Swagbucks! Click Here to join the fun!
KrisM is offline   Reply With Quote
Old 03-30-2013, 06:35 AM   #9
bluecandi's Avatar
bluecandi
Resident Dave Ramsey Guru
seller
 
Join Date: May 2010
Location: The South
Posts: 3,104
My Mood:
I dont know.....the rate change really wouldnt justify the fees and hassle. If you have been paying on it this long you probably have some major equity built up. Perhaps selling would be a better deal?? Then you could move in to something more affordable. Good luck!
__________________
Hi I'm Candice: mama to E, A,and B. Wifey to K. On the road to being debt free with Dave Ramsey!
bluecandi is offline   Reply With Quote
Old 03-30-2013, 07:57 AM   #10
cyndyinohio's Avatar
cyndyinohio
Registered Users
seller
 
Join Date: Dec 2007
Posts: 1,003
Re: Should I refinance???? HELP!! Advice needed!

We did just refinance to a 15 year 2 years ago after living here for 6 years...doing so again now would not lower our payment enough to justify the costs of doing it so that is really not an option.

In thinking more about it, what I value more than paying it off the mortgage early is being at home with the kids and homeschooling them. It would be $40,000 more in interest to go to at 30 year at this point, but in 13 years when my youngest is 17 (!!!!) I would hate to have a paid off house but have missed that time with my kids.

I might want to sell in about 10 years when I no longer have boys in the house to mow the grass. Not sure at all!!

But...my husband's new job does increase from newbie pay to a lot better amount in a year, so maybe I can just try to sell a whole lot for this one year??? Still, being a single mom (we are separated) and trying to homeschool...$360/month is a lot.

Thanks for taking the time to give your thoughts...any others???

Last edited by cyndyinohio; 03-30-2013 at 07:59 AM.
cyndyinohio is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Copyright 2005 - 2014 Escalate Media. All Rights Reserved.