Refi Decision Factors

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letahl
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Joined: Fri Apr 19, 2019 9:17 am
Location: colorado

Refi Decision Factors

Post by letahl » Fri Nov 08, 2019 6:27 pm

What is the metric by which you decide which of multiple properties to refi? I ran the breakeven calculator and it looks like six of one half dozen of the other. What are the major factors you consider when choosing which or whether to refi? Will not be pulling any cash out. They are two sides of a duplex, so there are no major intangible factors in re location, both investment properties. No plans to prepay these loans.

Property 1:
Loan balance 222,309
Interest goes from 4.875 to 4.375
Currently 26 years left on loan, will be 30
Closing costs 2320
Break Even: 15 months monthly payment
24 months PMI/Interest savings
33 months total savings after taxes
37 months total savings v. prepayment
total remaining payments current 171,877 new 177,277

Property 2:
Loan balance 249,270
Interest goes from 4.75 to 4.375
Currently 28 years left on loan, will be 30
Closing costs 2110
Break Even: 18 months monthly payment
24 months PMI/Interest savings
32 months total savings after taxes
35 months total savings v. prepayment
total remaining payments current 205,185 new 198,775

It's worth it to refi, right? I don't actually understand the breakeven factors, and I guessed I pay 25% in taxes in the breakeven calculator, because I have no idea what that means. I could shoot in the dark and pick because they look about the same, but I'd like to actually understand this stuff.

Thanks, Masterminds! xo

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