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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: shanaling on February 28, 2020, 03:27:48 PM

Title: Refinance roll fees into principal or pay upfront
Post by: shanaling on February 28, 2020, 03:27:48 PM

Which way is better?

Title: Re: Refinance roll fees into principal or pay upfront
Post by: ncornilsen on February 28, 2020, 03:48:44 PM

Depends, can you earn more than the interest rate on other applications of that money? 

Say you have a 6% student loan... you would be better off to roll the fees in at 3.5% and use the money you would have used for closing to pay down the student loans.

Title: Re: Refinance roll fees into principal or pay upfront
Post by: srad on February 28, 2020, 04:06:45 PM

Yep, Its all math.  Can you make more than a 3.5% return on 3-5k?  I"m guessing yes, so finance it.

FYI - on refi's, i have always rolled it in. 

Title: Re: Refinance roll fees into principal or pay upfront
Post by: Dicey on February 29, 2020, 04:11:04 PM

More important is to make sure you're paying as little in fees as possible. Get your fees low enough and this is a moot question, which is the best answer.