Comments on: I Love Brian Brady’s Twitter – You Will Too

By: Rhonda Porter

Rhonda Porter — Thu, 24 Jan 2008 00:37:53 +0000

yinyang and srini, this is way off topic…and perhaps should be discussed on the other post I referrenced? What ever mortgage product a person selects should fit into their financial picture and suit their long and short term goals. There is no one right mortgage for all.

By: yinyang

yinyang — Wed, 23 Jan 2008 22:26:44 +0000

srini,

check out this calc that shows you the break even point for refinancing: http://www.finance.cch.com/sohoApplets/MortgageRefinance.asp (you’ll have to install Java though).

Play with both 15-yr and 30-yr terms for the new loan.

By: yinyang

yinyang — Wed, 23 Jan 2008 19:52:14 +0000

srini,

go to bankrate.com, generate amortization tables for both 15-yr and 30-yr terms, look at the total amount of interest paid for each. Then let me know what you think.

By: Rhonda Porter

Rhonda Porter — Wed, 23 Jan 2008 19:28:23 +0000

srini, I did a post on that a while ago: http://www.raincityguide.com/2007/02/19/15-year-mortgage-too-pricey-for-normal-people/

It sounds like you pretty much have it figured out. I prefer the 30 year over the 15 only because of the flexibility as you mention. You can also effectively convert your 30 into a 15; however the reverse is not true.

Another busy day for me…I’ll try to pop by RCG later.

By: srini

srini — Wed, 23 Jan 2008 19:17:04 +0000

I know this is not related to this blog, but wanted to throw the question out as we all consider the refi situation and I was discussiing with a friend.

The talk was should we do a 30 year or a 15 year fixed. As of today I can afford both. So I was thinking of this options and remember hearing somewhere

Get a 30 year loan, but keep paying off extra amount in principal every month as if it is a 15 year loan, while cash flow is good in household budget. If I ever fall in hard times, I can always revert to the regular 30 year payment. Excecpt the fact that 15 year apr will be less than 30 year, any other thing I am missing ?

Does the loan get recalculated as we payoff the principal or since the amortization schedule is set in the begining, so does it just stay the same?

By: Rhonda Porter

Rhonda Porter — Wed, 23 Jan 2008 14:34:07 +0000

Yesterday was a big day…today should be interesting too! If I followed your example and provided rate lock advice using Twitter…I’d be saying lock, lock, lock…I lean towards locking and prefer not to float. I was very impressed that you pulled off all of those updates considering how busy it was yesterday.

By: Brian Brady

Brian Brady — Wed, 23 Jan 2008 03:46:36 +0000

Thanks, Rhonda. I usually tweet at the close of the day but today was a big day.