Refinance opinions needed

You definitely have to WANT to make bigger payments on your loan in order for what I do to work. Once you get used to the big payment, it is no longer an issue because you've just accepted that your mortgage payment is that amount each month. I also pay bills on payday. I try to get as much money out of my bank account and where it belongs (debt payment, savings, investments, etc) as soon as possible, because it prevents me from spending it on beer and trinkets. With paying larger mortgage payments, I split up the payments. If you're trying to pay $1,200 a month, every paycheck you put $600 into your savings, then when the payment is due the money is there without the full $1,200 coming from one check. Makes it much easier to swallow.

If you're disciplined enough to use the credit card debt switching you might be able to pull off not paying a transfer fee. Sometimes you can call the new company and negotiate the fee down or spend 4k of your normal bills on the new card during the interest free period and pay off the old card.

I agree with the 15 year route if you can swing it, it should save your between .5 and .8 in your rate as well. A HELOC isn't a bad idea either, we got one on this house but aren't planning on pulling any $$$ from it unless needed.

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Originally Posted by Wulf202

If you're disciplined enough to use the credit card debt switching you might be able to pull off not paying a transfer fee. Sometimes you can call the new company and negotiate the fee down or spend 4k of your normal bills on the new card during the interest free period and pay off the old card.

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I have used the method you described in the past, and it actually made me a little money (credit card points/incentives). Balance transfers almost never qualify for the rewards on CC's.

Saying that, don't get suckered into CC's because of their rewards. If you can benefit from them, while using the card responsibly, fine. But if not, don't even worry about the rewards.

One guy I worked with in the past actually used a chunk of his inheritance to game the CC companies. He would take his $5K card, and order $5k of $1 gold coins from the mint, and he would get 3% cash back on his purchase. Shipping on $5K of coins was ~$40, so he would net $110 each round. He'd just apply the points to his bill, take the coins to the bank, deposit them, and then pay his bill off. He was pissed when they quit letting people buy the coins.

Irving has very sound advice. Imagine the cash flow you'd have every month if you didn't have a mortgage at all.

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Originally Posted by Grant H.

I have used the method you described in the past, and it actually made me a little money (credit card points/incentives). Balance transfers almost never qualify for the rewards on CC's.

Saying that, don't get suckered into CC's because of their rewards. If you can benefit from them, while using the card responsibly, fine. But if not, don't even worry about the rewards.

One guy I worked with in the past actually used a chunk of his inheritance to game the CC companies. He would take his $5K card, and order $5k of $1 gold coins from the mint, and he would get 3% cash back on his purchase. Shipping on $5K of coins was ~$40, so he would net $110 each round. He'd just apply the points to his bill, take the coins to the bank, deposit them, and then pay his bill off. He was pissed when they quit letting people buy the coins.

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Did you mean $50K card? cause $5K ain't shit. You're in the poor house or have shit credit if you have a $5k limit on a card.

Why can't you (not you personally) still buy $50K of gold, and take the cash back? Well, there is the PM premium that's likely to negate the 3%.

It just doesn't add up to me. Someone feeding you a line?

Sounds like this...
http://www.creditcards.com/credit-ca...miles-1263.php

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Originally Posted by kidicarus13

Sounds like this...
http://www.creditcards.com/credit-ca...miles-1263.php

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OK, I get it, but his post said "gold coins."

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Originally Posted by brutal

OK, I get it, but his post said "gold coins."

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Ya... he buying something using his credit card in order to reap rewards from his credit card after turning it in to a bank dollar for dollar. What's it matter what the commodity is?

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Originally Posted by kidicarus13

Ya... he buying something using his credit card in order to reap rewards from his credit card after turning it in to a bank dollar for dollar. What's it matter what the commodity is?

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Yea, I get it capt obvious. The "gold coins" and bank deposit is where I was getting lost, ok?

PM's carry a premium that you're not going to get back (selling @spot) and you're sure as hell not going to turn them into a bank.

RIF.