Refinancing to increase cash flow or is there another way

[Danielle Moniz]

Hello All, 

Since interest rates are low, I'm considering refinancing which would reduce my monthly mortgage by 50% up to 67% depending on terms.  Is refinancing the best way to increase cash flow for investing or is there another way?  

Thank you for your support!

[Eric Johnson]

@Danielle Moniz Danielle, it sounds like the next step is to get a firm grasp on the costs associated with this loan. How long will it take before you make back the cost of capital? That's important to consider. 

Also, I don't see how reducing your rate by 50bps would reduce your monthly payment by 50%. On a 200,000 loan (for example) 3% PI payment is 843.21 (30yr loan) and a 2.50% PI payment is $790.24.

Your loan amount must be larger in order to reduce your payment if the rate is only going down 50bps. Correct me if I'm wrong