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LYC: stuff

Posted by oblique (aka kkuphal) Sep 9 '13, 09:09

So I know I talked before about the job opportunity with my wife. It didn't pan out. But there is still a relationship there that may develop into something in the future. Either way, we are settling in at the church and finding it a decent fit for our family so far. Anyways, since she's not working, we're looking at a little deficit when it comes to the monthly income and considering refi. About 2 years ago we refi'ed into a 15 year at 3.375%. I'm not sure how you get much better than that but the monthly is well, reasonably high. If we refi now to 30 we're at 4.625 and drop the payments by about $400 monthly. Thoughts?

Responses:

a temp job or two now and then will make up the difference, or sell shit on ebay -- nm - zeitgeist Sep 9, 13:28
would you get refi'd on one income? -- nm - zork Sep 9, 09:47
The finance guy in me says it's a bad idea, but you gotta do what you gotta do. - spamlet Sep 9, 09:41
I would say, drop it, and when she starts working consistantly, put the extra 400 a month back in principal payments. nm -- nm - groiny Sep 9, 09:20 13
- you're still losing ground in the long run because of the higher interest, but you gotta do what you gotta do. -- nm - znufrii Sep 9, 09:26 9
  - sure, but paying the extra principal will drop the interest paid total as well. - groiny Sep 9, 09:29 8
    - it'll help in the long run, sure - znufrii Sep 9, 09:33 7
      - best thing to do is to plot out the amortization tables in excel and compare the different scenarios. -- nm - znufrii Sep 9, 09:36 6
        
        best thing to do is cover your monthly expenses as best you can. the long run isn't important here. -- nm - amanda hk Sep 9, 09:38 5
        
        even in the short run, it's about $150-200 more being spent on interest a month instead of paying down principal to free up $400 a month in cash flow - znufrii Sep 9, 09:47 3
        
        the money spent on interest a month is irrelevant for this exercise. - groiny Sep 9, 09:49 2
        
        while your IM may be entirely true, including a discussion of costs in decisions about cash flow are by no means irrelevant. -- nm - znufrii Sep 9, 10:07
        
        right -- nm - Don Homer Sep 9, 09:51
        
        yeah, it is no fun stressing for 6 months on how you are going to feed your kids. nm -- nm - groiny Sep 9, 09:39
- This. -- nm - pmb Sep 9, 09:24
- Yeah, that's what I was thinking. Pisses me off I didn't just do that 2 years ago. We'd be sitting on a <4% 30year -- nm - oblique Sep 9, 09:22 1
  - you can't dwell on that, do it now, and get some peace of mind. - groiny Sep 9, 09:31
If your mortgage is 150k, with your current one, you will pay $41,365.15 interest. - loosilu Sep 9, 09:17 1
- all that is fine and good, but in order to swing making monthly payments on 1 income..... - groiny Sep 9, 09:19
you're going to pay a heck of a lot more in interest, unless rates go back down and you can refi again later, once your situation has inproved. -- nm - znufrii Sep 9, 09:14
How long do you expect she will be out of a job? -- nm - James Bond (aka Igor) Sep 9, 09:13 1
- She still does various things - oblique Sep 9, 09:14

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LYC: stuff

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