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The more I look at numbers the smarter it seems

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by , 02-26-2009 at 07:53 PM (999 Views)
I'm really really leaning toward refinancing in a big way.

If we do it as a 20 year mortgage, paid weekly(cuts it down to 17 years). We can survive on my income alone, mortgage, insurance, gas, groceries utilities and even a little money left over for savings.

Meaning, dh income could be used to beef of the EF, retirement and pay down the mortgage at an accelerated pace. If he were laid off and we end up with only 40% of his income, that would still be used for the EF and retirement since my income covers everything else.

It just makes sense in these unsure times to make it where we are sure we don't lose out.

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Comments

  1. frugal-fannie's Avatar
    It may also make sense if you are pretty sure he may lose his job and it is a lower interest rate, you can always pay off more later. But it is hard to refinance after he loses the job.
  2. mommy4ever's Avatar
    It *won't* be a lower rate. We are in a sub-prime mortgage, but it will go up regardless as our term is up in December, so it goes up if we renew now, or if we renew in December, the difference is $600 early renewal penalty. We'd save that in interest the first month on the other debts. The rate would be up 1.25% from what we have now. Right now, even with the market slide, we have about 75% equity. SO rolling the debt in shouldn't be an issue even with the market slides more. We were very fortunate in buying when we did or we'd be renters today with no recourse.

    I used a calculator. If we amortize at 25 years(sade to go backwards, but better to be safe), we can survive on my income alone. If we optionally double our weekly payments while we can afford to do so, and say we don't get a layoff, then we are still on the same mortgage payoff date as the current mortgage but with the security of knowing we can make the payments on one income. So we wouldn't be behind in payoff at all.