bought the home for 1.6M an year back. paying 3.5% interest for a 71 arm. applied for refi.. got interest down to 3.125%. however, house apprised for 100k less. Q: is it worth refi inf by paying 100k extra and lower the interest rate and emi? ( emi comes down by 700). or dont do it and invest 100k elsewhere? i am leaning to the 2nd option. appriciate your thoughts..
What the fuck did you just say
Dude why would you refi if your property depreciated???
You should buy Ethereum instead.
Invest the 100k somewhere else.
Do the math but probably not. Would refinance for a 30 year at 3.5 though so you have more money...
Nope
Assuming you did a 20% down, you would have a mortgage of about 1.2m. That translates to an interest of about $4500 a year (not compounding it yet). Investing 100k even in an online savings account would give you about 2 to 2.5% a year. That gives you a differential of about $2k (not to mention the closing costs that might be associated with a refinancing). If you took 25k out of the 100k and invested it elsewhere that might give you a higher rate of return to compensate for the 2k difference. Plus the benefits of having 100k cash on hand. So, the math doesn’t doesn’t seem to be in favor of refinancing. We haven’t accounted for the tax on earning or the tax savings on the extra interest paid. They’ll probably just cancel each other out (theoretically)
I meant 4500$ is the dollar difference when compared to the interest rates
Super helpful. Thanks.
Wow 🙄 Just set your money on fire instead.