Refinance or not: a loaded question

来源: blocked 于 2010-06-30 13:47:44 [] [旧帖] [给我悄悄话] 阅读数 : (1003 bytes)

the simple way to calculate this is to calculate the entire cost of two loans and compare it to see if it save money (rememeber to substract the cost of refinance when doing this).

unfortunately, a lot of people are even confused about that:)

Now the hard question is as followed:

1) how do you consider the time value of money? is money now give you more power than money later?

2) what's future inflation outlook of the US currency? how about deflation if any? it looks like we have one now.

3) what is power of cash now or in the near future? if current deflation continues, i can see tremendous power of cash. Cash will give you power you could have never believed of. i am talking about real estate investing here.

4) what is your future earning power when you retired? it has to do with tax implications when the loan is paid off..

Who can answer all questions correctly? I don't think any loan agent in the world can answer these questions well.

所有跟帖： 

• too complicate, -hmo- ♂ 给 hmo 发送悄悄话 (61 bytes) () 06/30/2010 postreply 14:03:10

• 回复：too complicate, -blocked- ♂ 给 blocked 发送悄悄话 (114 bytes) () 06/30/2010 postreply 14:13:45

• No. if you still pay the old monthly due, you will pay down earl -CrystalWater- ♀ 给 CrystalWater 发送悄悄话 CrystalWater 的博客首页 (0 bytes) () 06/30/2010 postreply 14:56:09

• -paydown earlier than your previous loan. -CrystalWater- ♀ 给 CrystalWater 发送悄悄话 CrystalWater 的博客首页 (0 bytes) () 06/30/2010 postreply 14:57:08

• right on! -美西游子- ♀ 给 美西游子 发送悄悄话 美西游子 的博客首页 (26 bytes) () 06/30/2010 postreply 14:56:25

• not only that, look at big picture, i.e. entire cost -美西游子- ♀ 给 美西游子 发送悄悄话 美西游子 的博客首页 (284 bytes) () 06/30/2010 postreply 15:05:31

• 回复：not only that, look at big picture, i.e. entire cost -blocked- ♂ 给 blocked 发送悄悄话 (109 bytes) () 06/30/2010 postreply 15:08:36

• 很正常. -美西游子- ♀ 给 美西游子 发送悄悄话 美西游子 的博客首页 (0 bytes) () 06/30/2010 postreply 15:19:57

• Let's do a simple example to explain ---- -CrystalWater- ♀ 给 CrystalWater 发送悄悄话 CrystalWater 的博客首页 (615 bytes) () 06/30/2010 postreply 15:23:41

• good job on math. but, did you notice that? -美西游子- ♀ 给 美西游子 发送悄悄话 美西游子 的博客首页 (122 bytes) () 06/30/2010 postreply 15:31:09

• It would be complicated if we think about the TAX change caused -CrystalWater- ♀ 给 CrystalWater 发送悄悄话 CrystalWater 的博客首页 (206 bytes) () 06/30/2010 postreply 15:38:02

• 山姆大叔笑啦! -美西游子- ♀ 给 美西游子 发送悄悄话 美西游子 的博客首页 (0 bytes) () 06/30/2010 postreply 16:09:33

• If I save $1 and pay 30 cents on tax -Conehead- ♂ 给 Conehead 发送悄悄话 Conehead 的博客首页 (26 bytes) () 06/30/2010 postreply 16:56:20

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