Yup, my wife and I are refinancing even though we’re taking a massive hit on equity. We’re not gonna ever be able to pay this house off, so might as well pay less per month towards an endless goal.
You’re not wrong, but buying your grandparent’s house in Texas is really difficult if they’re still alive and if the house is their primary residence. The reason for this, as you might imagine in a state as wonderful as Texas, is that Texas doesn’t want people to buy a family member’s house from under them (good thinking) and then letting that family member continue to live there for free (bad thinking. Awful thinking. Awful turd state run by turd people). As a result, we got to watch the interest rates rise and rise while we waited for administrative shit to get taken care of.
Now we finally had enough in equity to buy down a loan a few points, wrap up the administrative costs into the new loan, and bring our interest rate down a little more than 2% from what it was. An extra $200/month might not sound like a massive savings to some, but that’s our monthly coffee and milk covered (for now).
Yup, my wife and I are refinancing even though we’re taking a massive hit on equity. We’re not gonna ever be able to pay this house off, so might as well pay less per month towards an endless goal.
How long ago did you get your mortgage? Even 5 years ago the interest rates were rock bottom. Wouldn’t refinancing today double your interest rate?
You’re not wrong, but buying your grandparent’s house in Texas is really difficult if they’re still alive and if the house is their primary residence. The reason for this, as you might imagine in a state as wonderful as Texas, is that Texas doesn’t want people to buy a family member’s house from under them (good thinking) and then letting that family member continue to live there for free (bad thinking. Awful thinking. Awful turd state run by turd people). As a result, we got to watch the interest rates rise and rise while we waited for administrative shit to get taken care of.
Now we finally had enough in equity to buy down a loan a few points, wrap up the administrative costs into the new loan, and bring our interest rate down a little more than 2% from what it was. An extra $200/month might not sound like a massive savings to some, but that’s our monthly coffee and milk covered (for now).