Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

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MickMal
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Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Sun Jun 16, 2019 4:16 pm

Considering making a change to our mortgage and would appreciate feedback from fellow Bogleheads...

My wife and I are in our mid 40s and owe $353k on a 30 year fixed mortgage we took out in 2012 to purchase our single family home in Los Angeles. Original loan amount was $417k and we decided to speed up paying down the mortgage for peace of mind. We have enough of our money invested in the market and not looking to invest additional money rather than paying down the mortgage. Current home value is over $1mm with no additional debt and we plan to remain in the home until retiring at which time we plan to sell and move out of state.

We have the opportunity to refinance to a 10 year fixed mortgage with a rate of 2.925% for a cost of $3,000 total in loan fees. I also confirmed there are no prepayment penalties and the loan would be directly through the bank, no mortgage brokers.

While the savings would not be huge, we would save in interest costs and pay off the mortgage 13 years earlier if not sooner with additional payments. Obviously we would have less breathing room (higher mortgage payment) than the a 30 yr fixed but the additional interest savings is tempting. Regardless of what we decide to do mortgage wise, we do plan on paying off the mortgage within 5 to 10 years max.

Curious for any feedback or advice.

mhalley
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by mhalley » Sun Jun 16, 2019 4:25 pm

You don’t mention the current mortgage interest rate. There are many calculators to see what the savings on a refinance will be. Then decide if that amount is worth the hassle of refinancing.
https://www.zillow.com/mortgage-calcula ... alculator/

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MickMal
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Sun Jun 16, 2019 4:33 pm

Sorry...I meant to include the current mortgage rate which is 3.50% on a 30 year fixed. Thanks.

buhlaxtus
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by buhlaxtus » Sun Jun 16, 2019 4:38 pm

Check my numbers, but it seems like the new mortgage saves about $11000 over the next ten years, assuming you would also pay off the current one in the same time frame. Not a lot, but something.

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MickMal
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Sun Jun 16, 2019 4:42 pm

Thanks...my numbers match and I subtracted $3,000 for the loan fees so it was a savings of around $8,000 over 10 years. I’m considering it since even if we pay it off in 5 years we still would save $4,000. Only downside to consider is that we are locked into the higher payment than if we kept the 30 year loan and just added on additional principle payments.

MathIsMyWayr
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MathIsMyWayr » Sun Jun 16, 2019 5:13 pm

I also re-financed from a 30-year loan to a 15-year loan to get a lower rate a few years ago. In your case, your new payment will be about $3,396 for the next 10 years. You plan to pay it off in the same 10 years even if you keep the 30-year loan. The accelerated payment will be about $3,491. The difference in the monthly payment will be about $95. Now, the question is whether $3,000 up front is worth. For reference, the monthly payment of a loan of $3,000 at 37% for 10 years is about $95. Numbers tell me that you have a winner.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by willthrill81 » Sun Jun 16, 2019 5:20 pm

MickMal wrote:
Sun Jun 16, 2019 4:42 pm
Thanks...my numbers match and I subtracted $3,000 for the loan fees so it was a savings of around $8,000 over 10 years. I’m considering it since even if we pay it off in 5 years we still would save $4,000. Only downside to consider is that we are locked into the higher payment than if we kept the 30 year loan and just added on additional principle payments.
Yes, the higher payment is the primary risk involved with this strategy. Your emergency fund may need to be increased in order to compensate for the higher payments. But if you can handle the payments, I'd say go for it.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Watty
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by Watty » Sun Jun 16, 2019 5:29 pm

One thing to look at is if you will be able to max out all your tax advantaged accounts if you have the ten year loan payments. I am very pro "pay it off" when it comes to mortgages but I would max out those accounts first.

buhlaxtus wrote:
Sun Jun 16, 2019 4:38 pm
Check my numbers, but it seems like the new mortgage saves about $11000 over the next ten years, assuming you would also pay off the current one in the same time frame. Not a lot, but something.
Are you able to itemize your mortage interest?

If so then you would lose $11,000 in tax deductions so your net savings might be more like $8,000 depending on your tax bracket.

If you subtract the $3,000 cost to refinance then that is down to $5,000.

Goal33
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by Goal33 » Sun Jun 16, 2019 6:17 pm

Can you get a better rate than that without the fees on a 7/1 arm. If you’re going to pay it off in 10 years this is the way I’d go.
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by grabiner » Sun Jun 16, 2019 6:26 pm

Watty wrote:
Sun Jun 16, 2019 5:29 pm
Are you able to itemize your mortage interest?

If so then you would lose $11,000 in tax deductions so your net savings might be more like $8,000 depending on your tax bracket.

If you subtract the $3,000 cost to refinance then that is down to $5,000.
Some of the $3000 refinancing charge may also be deductible, as "loan origination fees" are sometimes treated as points. On a refinance, the points must be deducted over the life of the loan.
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MickMal
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Sun Jun 16, 2019 6:47 pm

Thanks all. Even though we plan to pay off our mortgage in less than 10 years, we still want some breathing room and not interested in a shorter term loan.

Spoke with a trusted CPA who reviewed our situation and stated “that of the $21,459 mortgage interest paid in 2018, it appears only $8,679 provided a tax deduction”.

Good point on the loan related fees in regards to potential tax write off.

Goal33
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by Goal33 » Sun Jun 16, 2019 6:48 pm

MickMal wrote:
Sun Jun 16, 2019 6:47 pm
Thanks all. Even though we plan to pay off our mortgage in less than 10 years, we still want some breathing room and not interested in a shorter term loan.
A 7/1 arm is still a 30 year loan
A man with one watch always knows what time it is; a man with two watches is never sure.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by grabiner » Sun Jun 16, 2019 6:51 pm

MickMal wrote:
Sun Jun 16, 2019 6:47 pm
Thanks all. Even though we plan to pay off our mortgage in less than 10 years, we still want some breathing room and not interested in a shorter term loan.

Spoke with a trusted CPA who reviewed our situation and stated “that of the $21,459 mortgage interest paid in 2018, it appears only $8,679 provided a tax deduction”.
This implies that any reduced mortgage interest will affect your tax deduction for the first few years. But if you pay off the mortgage on a 10-year schedule, then even at the current rate, you'll be taking the standard deduction around 2022.
Wiki David Grabiner

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MickMal
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Sun Jun 16, 2019 7:31 pm

Sorry I misunderstood on the 7/1 ARM but would still be concerned if our situation changed (i.e. job loss) and interest rates are considerable higher after the 7 year fixed period ended. Still thinking it over as 3.5% on a 30 year fixed is a great rate but every dollar saved is always helpful.

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8foot7
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by 8foot7 » Sun Jun 16, 2019 7:37 pm

I would not move off a 3.5% 30 year. Just pay it off as a 10 year and save the 3k.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by Golf maniac » Sun Jun 16, 2019 7:48 pm

Really a personal choice. If your income is very stable then I would refinance to the 10 year. Not a ton of money saved in the grand scheme of things but 8k is a very nice vacation or two.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by lepa71 » Sun Jun 16, 2019 7:59 pm

8foot7 wrote:
Sun Jun 16, 2019 7:37 pm
I would not move off a 3.5% 30 year. Just pay it off as a 10 year and save the 3k.
+1. Flexibility is the key.

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MickMal
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Sun Jun 16, 2019 8:01 pm

Yep - we are on the fence on what to do and agree there is value in flexibility.

lepa71
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by lepa71 » Sun Jun 16, 2019 8:23 pm

Just remember every time you refi you reset P and I proportions. You usually pay more interest in the begging.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by lepa71 » Sun Jun 16, 2019 8:29 pm

Here is where you could compare both mortgages. https://www.mtgprofessor.com/calculator ... or9ci.html

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by willthrill81 » Sun Jun 16, 2019 9:51 pm

lepa71 wrote:
Sun Jun 16, 2019 7:59 pm
8foot7 wrote:
Sun Jun 16, 2019 7:37 pm
I would not move off a 3.5% 30 year. Just pay it off as a 10 year and save the 3k.
+1. Flexibility is the key.
Flexibility is indeed valuable, but it's not of infinite value. In this case, there is a definite expense in retaining a 30 year mortgage and paying it off in a much shorter time frame in the form of a higher interest rate.

Earlier this year, I started a thread reviewing the cost of paying off a 30 year mortgage in 15 years vs. taking out a 15 year mortgage in terms of the interest rate differential. At the time, the former was more costly to the tune of $8,600 per $100k borrowed. That's pretty expensive flexibility in my book.

If you want flexibility to reduce your mortgage payments temporarily, then increase your emergency fund. The effective rate of return from doing so instead of going with a 30 year mortgage can be very high.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by lepa71 » Sun Jun 16, 2019 9:56 pm

willthrill81 wrote:
Sun Jun 16, 2019 9:51 pm
lepa71 wrote:
Sun Jun 16, 2019 7:59 pm
8foot7 wrote:
Sun Jun 16, 2019 7:37 pm
I would not move off a 3.5% 30 year. Just pay it off as a 10 year and save the 3k.
+1. Flexibility is the key.
Flexibility is indeed valuable, but it's not of infinite value. In this case, there is a definite expense in retaining a 30 year mortgage and paying it off in a much shorter time frame in the form of a higher interest rate.

Earlier this year, I started a thread reviewing the cost of paying off a 30 year mortgage in 15 years vs. taking out a 15 year mortgage in terms of the interest rate differential. The former was more costly to the tune of $8,600 per $100k borrowed. That's pretty expensive flexibility in my book.
I would agree with you if the difference in interest rate would be bigger in the OP case. He/she already did lots of principal prepayments. Did you actually look at interest paid at the beginning of the mortgage? I bet you probably didn't.
Last edited by lepa71 on Sun Jun 16, 2019 9:58 pm, edited 1 time in total.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by willthrill81 » Sun Jun 16, 2019 9:57 pm

lepa71 wrote:
Sun Jun 16, 2019 9:56 pm
willthrill81 wrote:
Sun Jun 16, 2019 9:51 pm
lepa71 wrote:
Sun Jun 16, 2019 7:59 pm
8foot7 wrote:
Sun Jun 16, 2019 7:37 pm
I would not move off a 3.5% 30 year. Just pay it off as a 10 year and save the 3k.
+1. Flexibility is the key.
Flexibility is indeed valuable, but it's not of infinite value. In this case, there is a definite expense in retaining a 30 year mortgage and paying it off in a much shorter time frame in the form of a higher interest rate.

Earlier this year, I started a thread reviewing the cost of paying off a 30 year mortgage in 15 years vs. taking out a 15 year mortgage in terms of the interest rate differential. The former was more costly to the tune of $8,600 per $100k borrowed. That's pretty expensive flexibility in my book.
I would agree with you if the difference in interest rate would be bigger. Did you actually look at interest paid at the beginning of the mortgage? I bet you probably didn't.
Please read posts before you criticize them.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

lepa71
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by lepa71 » Sun Jun 16, 2019 10:19 pm

No, I did not read the whole thread, only your 1st post. You still did not take in consideration that OP already was pre-paying principal. After refi P and I gets reset and OP will start over. As I said, the difference in rates is not big enough. Future is uncertain but I agree with you that we pay for flexibility.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by willthrill81 » Sun Jun 16, 2019 10:24 pm

lepa71 wrote:
Sun Jun 16, 2019 10:19 pm
No, I did not read the whole thread, only your 1st post. You still did not take in consideration that OP already was pre-paying principal. After refi P and I gets reset and OP will start over. As I said, the difference in rates is not big enough. Future is uncertain but I agree with you that we pay for flexibility.
The statement I made was clearly not referring to the OP's specific situation. It was merely intended to illustrate that, contrary to what many believe, there can be a significant expense in taking out or retaining a 30 year mortgage and paying it off much earlier instead of taking out a short-term mortgage and getting a significantly lower mortgage rate.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

lepa71
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by lepa71 » Sun Jun 16, 2019 10:28 pm

willthrill81 wrote:
Sun Jun 16, 2019 10:24 pm
lepa71 wrote:
Sun Jun 16, 2019 10:19 pm
No, I did not read the whole thread, only your 1st post. You still did not take in consideration that OP already was pre-paying principal. After refi P and I gets reset and OP will start over. As I said, the difference in rates is not big enough. Future is uncertain but I agree with you that we pay for flexibility.
The statement I made was clearly not referring to the OP's specific situation.
Good. I was.

I went through the same thing a couple of years ago with my rental after 13 years in my 30 years term mortgage.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by mortfree » Mon Jun 17, 2019 2:18 am

lepa71 wrote:
Sun Jun 16, 2019 8:23 pm
Just remember every time you refi you reset P and I proportions. You usually pay more interest in the begging.
Are you only referring to a refi of an existing 30 year back to a 30- year?

Does the same apply if the OP is 7 years into a 30-year but is now considering going to a 10-year mortgage?

The proportion between P and I in a 30 versus 10 are much different even at the beginning

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8foot7
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by 8foot7 » Mon Jun 17, 2019 6:18 am

willthrill81 wrote:
Sun Jun 16, 2019 9:51 pm
lepa71 wrote:
Sun Jun 16, 2019 7:59 pm
8foot7 wrote:
Sun Jun 16, 2019 7:37 pm
I would not move off a 3.5% 30 year. Just pay it off as a 10 year and save the 3k.
+1. Flexibility is the key.
Flexibility is indeed valuable, but it's not of infinite value. In this case, there is a definite expense in retaining a 30 year mortgage and paying it off in a much shorter time frame in the form of a higher interest rate.

Earlier this year, I started a thread reviewing the cost of paying off a 30 year mortgage in 15 years vs. taking out a 15 year mortgage in terms of the interest rate differential. At the time, the former was more costly to the tune of $8,600 per $100k borrowed. That's pretty expensive flexibility in my book.

If you want flexibility to reduce your mortgage payments temporarily, then increase your emergency fund. The effective rate of return from doing so instead of going with a 30 year mortgage can be very high.
Good point and there is a cost but
A) the rate on the 30 in OP’s case is close to a legendary low both relative and absolute
B) the rate on the 10 in OP’s case is only a little more than half a point’s difference whereas your thread quotes a differential of about a point and a half
C) you have to account for paying 3k in costs to go to the 10
D) a 10 is about the worst product around for anyone who would need even the slightest flexibility from one month to another; even a 15 year would create more breathing room
E) on a 10 there may not be significant room in the budget to increase the size of an emergency fund meaning one has to sell taxable investments and incur capital gains (and tax) which eats up interest savings differential

If you are dead set on paying the home off in 10 years and want to capture an even lower rate with some added risk of things don’t work out, then I’d look at a 10/1 ARM and try to get a relationship discount from your existing savings. Some folks in that other thread are getting 2.75 on a 10/1 ARM (amortized over 30 years so payment is not awful). Moving from 3.5 to 2.75 is more reasonable and if you’re paying extra principal the risk of the rate shift in year 10 is effectively zero for you.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by Bacchus01 » Mon Jun 17, 2019 6:40 am

MickMal wrote:
Sun Jun 16, 2019 4:42 pm
Thanks...my numbers match and I subtracted $3,000 for the loan fees so it was a savings of around $8,000 over 10 years. I’m considering it since even if we pay it off in 5 years we still would save $4,000. Only downside to consider is that we are locked into the higher payment than if we kept the 30 year loan and just added on additional principle payments.
From a straight financial calculation standpoint, it seems like a good idea.

However, how much is flexibility worth to you? What if you lose your job? Have an illness? An unexpected major expense? The ability to lower your payment back might be worth it to keep the 30 and accelerate payments.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by Bacchus01 » Mon Jun 17, 2019 6:45 am

lepa71 wrote:
Sun Jun 16, 2019 8:23 pm
Just remember every time you refi you reset P and I proportions. You usually pay more interest in the begging.
What? No.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by SovereignInvestor » Mon Jun 17, 2019 7:19 am

Would 10/1 ARM be helpful? Flexibility of.low payment via 30 year ammortization but low rate of 10 year loan.

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MickMal
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Mon Jun 17, 2019 9:29 am

We will decide what to do over the next few days and appreciate all of the feedback and advice.

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willthrill81
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by willthrill81 » Mon Jun 17, 2019 9:34 am

8foot7 wrote:
Mon Jun 17, 2019 6:18 am
willthrill81 wrote:
Sun Jun 16, 2019 9:51 pm
lepa71 wrote:
Sun Jun 16, 2019 7:59 pm
8foot7 wrote:
Sun Jun 16, 2019 7:37 pm
I would not move off a 3.5% 30 year. Just pay it off as a 10 year and save the 3k.
+1. Flexibility is the key.
Flexibility is indeed valuable, but it's not of infinite value. In this case, there is a definite expense in retaining a 30 year mortgage and paying it off in a much shorter time frame in the form of a higher interest rate.

Earlier this year, I started a thread reviewing the cost of paying off a 30 year mortgage in 15 years vs. taking out a 15 year mortgage in terms of the interest rate differential. At the time, the former was more costly to the tune of $8,600 per $100k borrowed. That's pretty expensive flexibility in my book.

If you want flexibility to reduce your mortgage payments temporarily, then increase your emergency fund. The effective rate of return from doing so instead of going with a 30 year mortgage can be very high.
Good point and there is a cost but
A) the rate on the 30 in OP’s case is close to a legendary low both relative and absolute
B) the rate on the 10 in OP’s case is only a little more than half a point’s difference whereas your thread quotes a differential of about a point and a half
C) you have to account for paying 3k in costs to go to the 10
D) a 10 is about the worst product around for anyone who would need even the slightest flexibility from one month to another; even a 15 year would create more breathing room
E) on a 10 there may not be significant room in the budget to increase the size of an emergency fund meaning one has to sell taxable investments and incur capital gains (and tax) which eats up interest savings differential

If you are dead set on paying the home off in 10 years and want to capture an even lower rate with some added risk of things don’t work out, then I’d look at a 10/1 ARM and try to get a relationship discount from your existing savings. Some folks in that other thread are getting 2.75 on a 10/1 ARM (amortized over 30 years so payment is not awful). Moving from 3.5 to 2.75 is more reasonable and if you’re paying extra principal the risk of the rate shift in year 10 is effectively zero for you.
Yes, the OP is in a different, although related, position to the topic of the thread I referenced. And I agree that the difference in mortgage rates between 15 and 10 years is so small, regularly zero, as to make the 15 a better option for nearly everyone.

In any case, those in the OP's situation need to crunch the numbers for themselves. The idea of 'pay off a 30 year mortgage in 15' typically ignores the numbers.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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willthrill81
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by willthrill81 » Mon Jun 17, 2019 9:36 am

Bacchus01 wrote:
Mon Jun 17, 2019 6:45 am
lepa71 wrote:
Sun Jun 16, 2019 8:23 pm
Just remember every time you refi you reset P and I proportions. You usually pay more interest in the begging.
What? No.
Correct. This seems to stem from the idea that there is a fixed amount of dollars that must be paid in interest on a mortgage, which is obviously false. If the mortgage interest rates were the same on a 30, 20, 15, and 10 year mortgage, then you could make the 10 year mortgage payment on a 30 year mortgage and pay it off in exactly 10 years. Refinancing a mortgage only 'resets' the time it takes to pay off the mortgage if you only make the newly lowered required payment.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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MickMal
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Mon Jun 17, 2019 12:49 pm

Maybe it was not meant to be, rates went up today and the 10 yr. fixed is now 3.487%. Looks like we will keep the 30 year and pay it off as quick as we can (peace of mind is worth it to us). Many thanks to all for the feedback.

SovereignInvestor
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by SovereignInvestor » Mon Jun 17, 2019 1:16 pm

Are you only looking to use 1 lender? I see many local lenders offering 10Yr fixed at 3.0% now. One has 2.875%.

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MickMal
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Mon Jun 17, 2019 1:22 pm

No, I am not stuck on one lender and have checked with quite a few banks. If you know of an reputable institution offering a lower rate, I would be grateful.

BuckyBadger
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by BuckyBadger » Mon Jun 17, 2019 3:23 pm

A savings of 800 a year over 10 years wouldn't be enough to compensate me for the risk of locking in that higher payment.

800 is 800 for sure, but i wouldn't think it would make that much difference to someone living in a million dollar home.

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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by Big Dog » Mon Jun 17, 2019 3:40 pm

I would not move off a 3.5% 30 year. Just pay it off as a 10 year and save the 3k.
Agreed. (Don't forget that there is no guarantee that you will still be in this house in 10 years.... Plans change. Health changes. Jobs/companies fold/move into other states.)

Alternatively, check the rates for a no-cost 15 year refi. (you could make extra payments on that as well, when cash is flush.)

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MickMal
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Re: Need advice - refinancing from 30 yr. to 10 yr. fixed mortgage

Post by MickMal » Mon Jun 17, 2019 3:44 pm

We are going to stick with the 30 year and payoff much sooner. As for the million dollar house, it's a beautiful 930 sq. foot home but its the high prices of LA estate in an ideal area that Jack's up the value. We are planning to stay put in the house until retiring in 16 years it so.

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