If you’re trading 20% credit card interest for 6% mortgage, it’s usually a win, but you gotta watch out for extending that debt over 30 years. That dishwasher might end up costing double if you...
That’s a smart approach—“made sure the new payment didn’t kill my cash flow.” I always wonder, do folks really think about how long they’ll carry that debt? Swapping 20% for 6% looks great on paper, but like you said, if you’re stretching it over 30 years, is it really saving you in the end? Sometimes I see people roll in little stuff—appliances, vacations—without thinking about the true cost over time. How do you decide what’s worth refinancing and what’s better paid off quicker?
- Totally agree, rolling high-interest debt into a lower-rate mortgage can be a lifesaver, but only if you’re disciplined.
- Here’s my take:
- Only refinance stuff you’d pay off in 5 years or less anyway. Stretching a $1,000 fridge over 30 years is just burning money.
- If it’s a big emergency or major home repair, maybe it makes sense—just don’t make it a habit.
- I always run the numbers: if the total interest paid is more than I’d pay just grinding it out, I skip it.
- Honestly, I’ve seen people refinance vacations...that’s wild to me. If you can’t pay it off quick, it probably shouldn’t go in the mortgage.
Stretching a $1,000 fridge over 30 years is just burning money.
That line made me laugh—couldn’t agree more. I’ve seen folks tack on all sorts of little expenses to their mortgage and then wonder why they’re still paying for that ancient washing machine when the thing’s already in landfill. I get the temptation, though. When you’re staring down high-interest debt, it feels like any escape route will do. But yeah, vacations on a mortgage? That’s a hard pass from me. Your approach of running the numbers every time is on point. Sometimes the “quick fix” just drags out the pain.
I get where you’re coming from, but I’ve actually seen a few clients roll some home upgrades into a refi and come out ahead—if the numbers make sense. Like, one couple replaced their HVAC during a refi at a much lower rate, and the energy savings actually helped offset the extra interest over time. Not saying it always works, but sometimes it’s not just burning money. Just gotta watch those impulse buys... that’s where folks get in trouble.
I get where you’re coming from, but I’ve actually seen a few clients roll some home upgrades into a refi and come out ahead—if the numbers make sense. Like, one couple replaced their HVAC dur...
That’s a good point about rolling in upgrades if the numbers add up. I’ve wondered, though, how do you figure out if the new monthly payment (with the upgrades) is really better than doing a separate home equity loan? Anyone here run the numbers both ways?
