document.write( "Question 696597: I am trying to create an algebra equation for a refinance dilemma.
\n" ); document.write( " I currently have a $150,000 balance of my mortgage for 20 more years at 3.8% APR. I am getting offers to refinance for 3.5% with $3600 closing or 3.3% APR with $4800 closing.
\n" ); document.write( "I am looking to use an algebra equations to determine how long it would take me to get my closing cost back and what company would be the best to use if I decide to do it.\r
\n" ); document.write( "\n" ); document.write( "Thanks \n" ); document.write( "
Algebra.Com's Answer #429244 by ankor@dixie-net.com(22740)\"\" \"About 
You can put this solution on YOUR website!
I currently have a $150,000 balance of my mortgage for 20 more years at 3.8% APR.
\n" ); document.write( " I am getting offers to refinance for 3.5% with $3600 closing or 3.3% APR with $4800 closing.
\n" ); document.write( ":
\n" ); document.write( "I would not refinance for small a difference in interest.
\n" ); document.write( "Your payment difference going from 3.8 to 3.3 is about $40 a month
\n" ); document.write( "To recover the cost of $4800 it would take you 120 months or 10 years
\n" ); document.write( ":
\n" ); document.write( "If you are paying $4800 up front just put it on the principal and reduce the life of the loan by almost a year (11 months)
\n" ); document.write( "11 monthly payments saved is a big amt
\n" ); document.write( ":
\n" ); document.write( "If you are not putting up front, they will add it to amt of the loan and of course charge you interest on it for 20 years
\n" ); document.write( ":
\n" ); document.write( "I think these finance companies are a bunch of crooks. Maybe a 2% reduction would make sense, but not .5 %
\n" ); document.write( ":
\n" ); document.write( "If you really want to save some money, put $500 or whatever you can on the principal every month, you would save enough money to pay cash for a car. \n" ); document.write( "
\n" );