patrick.net

refi 40 years

When did you buy, and will you be putting down a full 20%, to avoid the MIP?
I don't know what your terms are, but I bought in 2010, when the MIP was a flat $62 bucks, and I will no longer be required to pay it when I get 21% equity, either through paying it down, or though appreciation.

The MIP has more than quadrupled since I bought, and I read just yesterday, they are yet raising it again, and will require all new mortgages to carry this huge lofty fee, more than $240 or so, for the life of your loan.
At this rate, there is no way I will save money refinancing even at 2% interest.
Also how one sided was your mortgage terms in your favor when you took out the loan? At the time I bought, there was a Washington dog and pony show going on to protect the homeowner, and to give them more rights. They have since mended their ways, and new mortgages protect the banks, and their rights to charge late fees, and raise your rate, when your late, and charge for early payments, and the right for the banks to dibby early or over payments how ever they see fit. Where every penny I pay over my monthly mortgage all goes to pay down principal, in the past, banks could use a portion to pay interest as they saw fit.

I'm very skeptical that banks are itching to refi mortgages that are less than 3 years old in the guise of making those mortgages affordable, in a time when fees have been added to the process at least a new one every month for the last 3 years.

If you pay like $1,200 more every month, you can pay it off in as little as 7 years.
If you can afford it, just pay more and pay off early.

Sometimes there's more than just Pigs in a pig in a poke.

Why would you ever want to pay off your home in today's market. Suck out all the equity and use the cash to make money in the market. What is stopping home prices from crashing is also pumping up the stock market. Having your money tied up in home equity is missing an opportunity for massive growth in the next 3-5 years IMHO.

You will still have your house and benefit from any appreciation there when you sell. However, at this point I think anything that makes housing appreciate X% makes the stock market appreciate 4X%.

Re-fi for the longest period you can because the interest rates are almost at it's lowest ever and you will be paying the fixed amount when the value of the money would be much less later compared to to-day because ov even minimal inflation.

EInvestor says

Re-fi for the longest period you can because the interest rates are almost at it's lowest ever and you will be paying the fixed amount when the value of the money would be much less later compared to to-day because ov even minimal inflation.

Exactly, then take your monthly savings and dump it into INTC, PG, GE, CVX, PFE, etc. After 5 years you'll look back and smile.

Debt is a liability. Work to reduce it. You will sleep much better.