topic Re: Mortgage refi vs BT shuffle in Personal Finance

Mortgage refi vs BT shuffle

tcbofade — Sun, 22 Sep 2019 22:44:41 GMT

DW and I have been planning to refinance our home early next year. She's had some employment issues this year, but at this moment, we're still on track.

As we approach the end of the year, I'm looking at numbers and it may not be worth it... With current cash out refinance rates around 3.5%, we'd save about $400 per month, but lose nearly $20k over the life of the new loan.

I'm still working on exact details, but I think that it is entirely possible that we ALREADY have enough plastic in place to spend another year doing the BT shuffle at little or no cost...

IF we can do a cash out refi for UNDER 3.25%, we'd come out just a little bit ahead, but that looks doubtful right now.

Your thoughts?

Re: Mortgage refi vs BT shuffle

Meanmchine — Sun, 22 Sep 2019 22:57:37 GMT

Does another possible Fed reduction before the end of the year influence your decision ?

Re: Mortgage refi vs BT shuffle

tcbofade — Sun, 22 Sep 2019 22:59:26 GMT

@Meanmchine wrote:
Does another possible Fed reduction before the end of the year influence your decision ?

It's certainly possible... we'll see what rates are after 01 January.

If we're NOT going to refinance, I might have some out of the garden fence work to do in December...

Re: Mortgage refi vs BT shuffle

K-in-Boston — Sun, 22 Sep 2019 23:07:41 GMT

I would do the math again by NOT saving $400 a month (unless things are really, really tight as it is) and seeing how it works out with you paying an additional $400 each month toward the principal. Especially if this is going to be a 30 year refi, that additional principal could be huge especially front-loaded.

Not to convolute the comparison further, but you do need to keep inflation in mind as well. Let’s say you’re paying a combined $4000 a month now; 20 years on, that $4000 won’t be nearly as much as it is in today’s money. On the other hand, doing the BT shuffle you might be looking at it being paid off in 5-10 years while lumping it in with the mortgage you’re gonna be paying it for ages.

If you can do it in the 3s, you might there is added value in not having to do the BT shuffle all the time as well. The other cautionary tale (and you know that we have similar credit goals) is that if a recession hits, those BT offers and the low/no APRs that you and I enjoy today could dry up.

Re: Mortgage refi vs BT shuffle

Anonymous — Mon, 23 Sep 2019 00:49:15 GMT

@tcbofade I wonder how much longer the bt deals will keep coming. Dw and i stuffed $5K tax payment on a 24 month 0% bt deal. No fee either. I really don't see rates coming down . They are already very low. I recall the second house i bought with ex (the 1st mrs Backwoods) the rates dropped from 10% to 8% and we ran and bought at 8% because the rates had not been that low in years. In the county where I live there is negative unempoyment. The local firms even retail offer signing bonus upto $1,000 . Most of new hires come from 25 miles away now even for the most basic jobs. I just can't see it going on like this. I think the amazing bt deals will go away in the next 15 months.

Re: Mortgage refi vs BT shuffle

SouthJamaica — Mon, 23 Sep 2019 00:55:08 GMT

@tcbofade wrote:
DW and I have been planning to refinance our home early next year. She's had some employment issues this year, but at this moment, we're still on track.

As we approach the end of the year, I'm looking at numbers and it may not be worth it... With current cash out refinance rates around 3.5%, we'd save about $400 per month, but lose nearly $20k over the life of the new loan.

I'm still working on exact details, but I think that it is entirely possible that we ALREADY have enough plastic in place to spend another year doing the BT shuffle at little or no cost...

IF we can do a cash out refi for UNDER 3.25%, we'd come out just a little bit ahead, but that looks doubtful right now.

Your thoughts?

Just do the credit cards. Don't extend your mortgage in any way.

Re: Mortgage refi vs BT shuffle

Anonymous — Tue, 01 Oct 2019 01:35:15 GMT

24 month 0% BT w/ no fee? Was this a targeted offer? Issuer? More info would be great as this sounds excellent! TIA

Re: Mortgage refi vs BT shuffle

Anonymous — Tue, 01 Oct 2019 02:25:06 GMT

@Anonymous wrote:
24 month 0% BT w/ no fee? Was this a targeted offer? Issuer? More info would be great as this sounds excellent! TIA

@Anonymous yes that was very targeted Amex offer. We could have taken more upto $15,000 total but did not because we did not want to sound greedy. Amex likes my DW much better than me and my card has a member since date 2001 hers 2017. Hers better apr and limits Her fico is arround 800 mine slightly hirer

Re: Mortgage refi vs BT shuffle

Anonymous — Tue, 01 Oct 2019 04:12:00 GMT

Personal or business? Curious since DW has Green, Cash Magnet, and Blue Business Plus in addition to the amex cards in my siggy

Re: Mortgage refi vs BT shuffle

Anonymous — Tue, 01 Oct 2019 05:38:01 GMT

@Anonymous wrote:
Personal or business? Curious since DW has Green, Cash Magnet, and Blue Business Plus in addition to the amex cards in my siggy

That was on a BCP card. Dw also has Magnet card but it never got the offer. We don't use Amex for Business. Chase, US Bank and the sometimes used Spark for biz

Re: Mortgage refi vs BT shuffle

Anonymous — Tue, 01 Oct 2019 11:46:09 GMT

Thanks