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Old 07-20-2020, 04:32 PM   #387 (permalink)
Xist
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To summarize #365, Mom owes $37,000 at 5.875%, which they already refinanced from about 9% with a bankruptcy on their record. If I put $9,000 a year into Mom's mortgage, we will pay it off in 24 months, and save $4,500 in interest, so in a way that is a 25% return in 2 years.

Otherwise, Mom will pay off her house in 5 years and 11 months.

The interest rate is less important when you aggressively pay down a debt, but I still transferred my credit card balance when I was paying it off. I don't know if I ever calculated how much I was saving, but after pulling numbers from several different sites: If Mom refinances for 15 years at 3.199%, but continues to make the same payments, she will pay off her mortgage in 5 years and 5 months, saving $2,774.48. If she refinances, continues paying the same amount, and I pay an extra $750 a month, we will save something like $5,450 total.
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