Author Topic: Cash Out/Pay off Debt via Refi?  (Read 1133 times)


  • 5 O'Clock Shadow
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Cash Out/Pay off Debt via Refi?
« on: June 07, 2015, 11:43:47 AM »
Just wondering if the scenarios make any sense at all:

Refi into a 4% mortage from a 4.875% mortgage with any one of the following scenarios:

Cash out, pay off $9k HELOC balance at 4.99%.
Cash out, pay off $5k student loan at 4.625%.
Cash out, pay off $7k Visa at 0% for 12 months (regardless, this is targeted to paid off in full before it goes to 12.99% so it's probably not a good candidate)

Home value is ~$420k and we owe $279k. No PMI or HOA. It's possible that we'll move in one year to a similarly priced home, so we'll need an available 20% down from the sale of current home to avoid PMI on the future home. Move will be made to a smaller home to get into a better school district. Intent is to be cost neutral on the move (save realtor fees).

I know that you pay more interest in the beginning of a new mortgage loan. But I can't get my head around how this plays into folding in debt at previously various interest rates.

« Last Edit: June 07, 2015, 12:05:18 PM by darkhorse »

Able was I ERE

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Re: Cash Out/Pay off Debt via Refi?
« Reply #1 on: June 07, 2015, 02:05:38 PM »
 How much would you save for each loan versus just aggressively paying each down?  Remember to include any points paid as part of refinance.