Quantcast

real estate & banking monkeys: can't recast a VA/FHA loan; next?

$tinkle

Expert on blowing
Feb 12, 2003
14,591
4
with hookers *and* blow being out of the question, what's the best way to distribute proceeds from sale of home? a refi @ > 1 pt over what we got our new loan for ~4mos ago (http://www.bankrate.com/va-loans/) seems like throwing away good money (estimated closing costs around $3k). and paying down principle would immediately adjust how much [tax deductible] interest we'd be paying, while not lowering the monthly payment. so i don't want to miss out on the tax break, but isn't there a 'tipping point' after which taking the sale proceeds out of a money market account earning very modest interest & putting it toward the loan then makes sense?

teh google hasn't been terribly helpful in finding me a calculator for these variables, and i don't want to make a call that will drag on & result in conditional help ("come on down to the office & we'll crunch the numbers")

WWRMD?
 

stoney

Part of the unwashed, middle-American horde
Jul 26, 2006
17,832
3,187
Colorado
Compunding interest. Back out how much money you will save pay pre-paying vs. sitting in the mmkt. You aren't getting that big of a tax break, so just do the math.
 

$tinkle

Expert on blowing
Feb 12, 2003
14,591
4
Compunding interest. Back out how much money you will save pay pre-paying vs. sitting in the mmkt. You aren't getting that big of a tax break, so just do the math.
kinda what my gut was telling me if i game it w/ a round hypothetical of $10k in interest in a 28% bracket gets me $2800 back (int free loan to the gov't), but if i pay down all but $125k (current loan amt is $320k), my monthly payments will be principle heavy (don't know the ratio, but i'd imagine 3:1 princ:int).

i'll be lucky to see $500/yr in mmkt if i let my sale proceeds just sit
blame obama?
for rhonda rousey's boob not popping out? you betcha