“It is not Worth Me Refinancing to Save $200 Per Month”

Sometimes I just don’t understand. I have had discussions with these homeowners for almost a month. They have been paying 6.75% interest only for 8 years and have a balloon payment due in 2 years. They will reduce their rate over 2%, saving $200 per month and will now be amortizing the mortgage and paying down principle each month, which means a bit over $500 per month for the first year.

How do you not want to see gaining over $700 per month in the first year and better every year after that. They kept saying, but it’s only $200 per month in real money. This went on for days, I kept explaining it every which way I could, but no luck.

Today a breakthrough, the daughter called me to go over the same thing and she immediately said. We save $200 each month and each month we owe $500 less on the home. Wow, what was it that she heard, that her parents did not?

As frustrating as this has been for the last month, something like this is always a good lesson in communication. I will be meeting with them next week to get the refinance started.