04-05-2009, 06:10 PM
"It is worse than you state, because all loans are not amortized using the same rules"
[#8000ff]Your point is well taken and I agree totally. For this reason, I use a loan officer I trust and does what she says. Although her rates are never the "lowest", they are competitive.[/#8000ff]
[#8000ff][/#8000ff]
[#8000ff]When I went to a 15 year loan, I did pay considerable for closing costs. However, that will easily be paid within the first year of the loan.[/#8000ff]
[#8000ff][/#8000ff]
[#8000ff]The worst thing one can do is to continually refinance and go back to the 30 year loan. I understand at times, one must do but it is a dangerous habit.[/#8000ff]
[#8000ff][/#8000ff]
[#8000ff]Several years ago, I talked a family member into refinancing to a 15 year loan. They now have it down to 8 years. The rate is around 5.5% fixed. [/#8000ff]
[#8000ff]They were considering going back to a 30 at a "lower" interest rate.[/#8000ff]
[#8000ff][/#8000ff]
[#8000ff]Fortunately, they didn't and are going to stay the course. Reduction of debt is a guaranteed return on investment.[/#8000ff]
[signature]
[#8000ff]Your point is well taken and I agree totally. For this reason, I use a loan officer I trust and does what she says. Although her rates are never the "lowest", they are competitive.[/#8000ff]
[#8000ff][/#8000ff]
[#8000ff]When I went to a 15 year loan, I did pay considerable for closing costs. However, that will easily be paid within the first year of the loan.[/#8000ff]
[#8000ff][/#8000ff]
[#8000ff]The worst thing one can do is to continually refinance and go back to the 30 year loan. I understand at times, one must do but it is a dangerous habit.[/#8000ff]
[#8000ff][/#8000ff]
[#8000ff]Several years ago, I talked a family member into refinancing to a 15 year loan. They now have it down to 8 years. The rate is around 5.5% fixed. [/#8000ff]
[#8000ff]They were considering going back to a 30 at a "lower" interest rate.[/#8000ff]
[#8000ff][/#8000ff]
[#8000ff]Fortunately, they didn't and are going to stay the course. Reduction of debt is a guaranteed return on investment.[/#8000ff]
[signature]