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.
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.
@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.
