|01-18-2012, 02:53 PM||#1|
Join Date: Jan 2012
I want to refinance our home so we can get a new car. Has anyone done this lately? I want to do it before the rates decide to increase. Tips or pointers would be great.
|01-18-2012, 03:55 PM||#2|
Join Date: Jan 2010
Training Exp: 15
Training Type: Powerlifting
The Bernank will make sure rates don't increase. Why dont you ditch the new car and save some money for your future.
|01-18-2012, 04:39 PM||#3|
Join Date: Mar 2011
Training Exp: 30+
Training Type: Other
Fav Exercise: Anything overhead
Fav Supp: Creatine. C'est tout.
230 strict press @ 220; bodyweight+187 X 4 dips @ 180; 403 front squat @ 210; 10 000 push-ups.
Ignoring irrelevant credentials since I was 17.
|01-19-2012, 09:40 AM||#4|
Join Date: Nov 2011
Training Exp: 2.5yrs
Fav Exercise: OHP
you want to refinance your home in order to purchase an asset that depreciates at light speed.
This makes no sense to me.
|01-19-2012, 09:52 AM||#5|
SFHW = Win
Join Date: Apr 2011
Location: Near Dallas, TX
Training Exp: 1-2
Training Type: General Fitness
Fav Exercise: Kettlebells, for now
Fav Supp: XTend
Refinancing the home makes sense -- makes a lot of sense. Generally if you can save 1% or more in interest you'll save in the long run (remember, there are closing costs and the like to worry up front). My wife & I refinanced last summer and went from a 25-year note (20 years remaining) at 5.8% to a 10-year note at 3.375%. Our payments went up somewhat, but we also cut our remaining time in half and now we're paying LOT less in interest.
So if you're planning on refinancing the house, I'd seriously consider refinancing to a shorter term note where your payments will be about the same as what they are now. Generally the shorter the term of your mortgage, the lower your interest rate is going to be.
Now if you're planning on refinancing for a lower monthly payment and using that saved cash to buy a car, that does make sense. However, if you are planning on refinancing with cash out to buy the new car -- DON'T. Why would you want to finance a car (which will depreciate rapidly over the first 2-3 years) and finance it for the same term as your house?
"Generally people can't squat because they're lacking in the 'lower ab' area. As in they need to grow a set." - LtL
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Valentin Konstantin Platz
|01-19-2012, 09:56 AM||#6|
Bearded Beast of Duloc
Join Date: Jul 2009
Training Exp: 20+ years
Training Type: Powerbuilding
Fav Exercise: Deadlift
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I wouldn't refinance to purchase something that has a decreasing value like a car. I would take the extra money and pay down debt, or use it to make extra payments on the home itself.
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