Real Estate

Refiance question, worth it?

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  • Jul 23rd, 2020 8:36 am
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[OP]
Deal Addict
Jan 31, 2007
4168 posts
1212 upvotes

Refiance question, worth it?

Good Day,
My current rate is 3.44%, got $260,000 left. i got approved for 5 years closed at 1.83%. Is it worth switching if penalty is $4200
Thank you
5 replies
Sr. Member
Jan 22, 2012
649 posts
264 upvotes
Bradford
How much is left in your term? What is the payment difference?
[OP]
Deal Addict
Jan 31, 2007
4168 posts
1212 upvotes
Topher86 wrote: How much is left in your term? What is the payment difference?
2 years 2 months
Deal Addict
Jun 7, 2017
1043 posts
832 upvotes
BC
If you did not switch, you would pay $8944/yr interest for $260k @ 3.44%. $19379 over remaining 2.17 yrs.

The same amount for same time at 1.83% is $4758/yr interest. $10325 over 2.17 yrs.

So, pay $4200 penalty to save $9054. That's my rough estimate.
Deal Addict
User avatar
Nov 15, 2013
2901 posts
4238 upvotes
Toronto, ON
Furcorn wrote: If you did not switch, you would pay $8944/yr interest for $260k @ 3.44%. $19379 over remaining 2.17 yrs.

The same amount for same time at 1.83% is $4758/yr interest. $10325 over 2.17 yrs.

So, pay $4200 penalty to save $9054. That's my rough estimate.
TLDR: F**** YEAH!

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