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NNN0LHI (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:26 PM Original message |
Is loan refinancing a scam? Can someone tell me if I have this right? |
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MercutioATC (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:31 PM Response to Original message |
1. All commercial loans front-load the interest. |
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NNN0LHI (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:38 PM Response to Reply #1 |
4. Wasn't always that way. I can remember when some loans had early payoff penalties |
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yellowdogintexas (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:27 PM Response to Reply #4 |
17. some loans still do mostly the loans with very low interest that adjusts. In other |
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slackmaster (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:32 PM Response to Original message |
2. My philosophy is to refinance with a shorter term, if at all |
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aspergris (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:33 PM Response to Original message |
3. Amortization |
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NNN0LHI (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:42 PM Response to Reply #3 |
5. That is only partly correct |
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aspergris (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:47 PM Response to Reply #5 |
7. well yes |
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KharmaTrain (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:43 PM Response to Original message |
6. It Also Depends On Your Tax Bracket |
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dysfunctional press (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:48 PM Response to Original message |
8. we refinanced a 30-year loan 2 years in for a lower rate and a shorter term... |
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NNN0LHI (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 12:54 PM Response to Reply #8 |
9. But the first 2 years of payments you made were mostly interest |
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bullimiami (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 01:18 PM Response to Reply #9 |
10. jesus its not rocket science. |
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NNN0LHI (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 01:29 PM Response to Reply #10 |
12. Then how can I only owe 17 hundred dollars of interest on 27 grand over the next 5 years? |
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SoCalDem (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:28 PM Response to Reply #12 |
18. Because home loans are set to pay off interest-only |
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yellowdogintexas (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:29 PM Response to Reply #12 |
19. because the proportion of your payments is mostly now going to principal |
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Telly Savalas (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:53 PM Response to Reply #12 |
23. You can't at the interest rate you cited. |
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NNN0LHI (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 05:09 PM Response to Reply #23 |
24. I was paying over 2 grand a year interest on this loan until very recently |
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tkmorris (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:33 PM Response to Reply #10 |
21. Sorry friend, but you have that wrong. |
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NNN0LHI (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 05:56 PM Response to Reply #21 |
25. I assumed (incorrectly as you point out) that is how it works intuitively |
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dysfunctional press (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:09 PM Response to Reply #9 |
14. that's just how it works. |
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SoCalDem (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:24 PM Response to Reply #9 |
16. It's how the financial industry builds those big shiny buildings.. |
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DebJ (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 01:24 PM Response to Reply #8 |
11. lots of people don't get high school economics. I just talked to |
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leftofthedial (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 01:36 PM Response to Original message |
13. all of capitalism is a scam |
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Lex (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:15 PM Response to Original message |
15. What was your original loan amount, interest rate, and term? |
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MasonJar (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:31 PM Response to Original message |
20. Quite simply the answer to your question is "yes." |
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lonestarnot (1000+ posts) Send PM | Profile | Ignore | Mon Jul-07-08 04:33 PM Response to Original message |
22. Buying cars on time sucks ass! |
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DU AdBot (1000+ posts) | Thu Oct 17th 2024, 09:10 PM Response to Original message |
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