Mortgage burning party — date change

Attention! The party originally scheduled for 2036 has now been moved up to 2028.

Finding a silver lining amid all the bleak economic news, we just shaved 8 years off our mortgage because interest rates have come down.

Two days ago, we decided to refinance. Our broker was able to lock in a terrific rate and get all our info together to close before Christmas.

Rather than shortening the term, we could have instead saved a hundred or so each month in payments, but we decided that truly owning our own home when Tessa and Reed are in their 20s was better than making payments until Tessa is 35 and Reed is 33. (Criminy — any way you look at it, that’s a long time!)

And my fantabulous mortgage broker was able to roll all the fees into the loan, and STILL our payments will remain about the same as they are now. We will simply be able to burn the mortgage 8 years sooner.

Net effect, we’ve saved ourselves roughly $16,000 a year, or $130,000.

Time to go shoe shopping. WooHoo!

If you’re currently paying more than 6.625% on your mortgage, you might want to check with a lender to see if this is the right time for you to finance. Or, my broker is currently offering free appraisals to people who refinance through him. He’s good, he’s fast, he’s reliable, and he’s basically giving you $350. (And no, I don’t get a cut from him. I just want to pass on great service from a great guy.)

Let me know if this works out for you. I’m so excited I could spit.

18 thoughts on “Mortgage burning party — date change”

  1. Yay! Good for you!! Dh & I paid off our mortgage a few years back & let me tell you, it felt/feels soooo good!!

  2. Way to go on grabbing a great deal!I’m lucky in that we were able to finance 100% of our loan, with a 1st and 2nd. The 2nd has a higher percentage, but I’m able to pay $200 extra a month on it and it will be paid off in 7.5 years, rather than 15 years, and saving about $40,000 in interest.Once I’m done with the 2nd, then I can put all that extra money into paying off the 1st, which has a rate less than 6%.Woohoo for low interest rates!

  3. Way to go on grabbing a great deal!I’m lucky in that we were able to finance 100% of our loan, with a 1st and 2nd. The 2nd has a higher percentage, but I’m able to pay $200 extra a month on it and it will be paid off in 7.5 years, rather than 15 years, and saving about $40,000 in interest.Once I’m done with the 2nd, then I can put all that extra money into paying off the 1st, which has a rate less than 6%.Woohoo for low interest rates!

  4. That is AWESOME! We’d love to do that… our problem is we are WAY too upside down in our mortgage right now to pull off such a feat.Thank you krappy Detroit economy!

  5. @Loribeth: congrats to you!@Melissa: let me know what happens and where you want to meet for those drinks.@Antigone: great idea! I’m buying at the next Lushary.

  6. We sold 2 homes to buy this one and our “Banker Friend” didn’t do us quite right. Me and Missy are looking to refi and I sent her a link to your ATR. Fingers crossed.. will keep you posted (and dammit, if it works out dinner and drinks are on me, girl!!) :o)

  7. When we bought this house, we thought we would not be staying longer than 5 years. So we went with the adjustable. Refi-ed two times since then, every time thinking we will be out before the reset 5 year term is up. Ha-ha. Still here, though we did save a bunch of money so far by doing the adjustable. So the last term expires this coming spring, and we are in fact looking to refinance again. I’d like to take the fixed this time, but can it really be that we will stay in this house longer than 5 more years? Need to think…

  8. When we bought this house, we thought we would not be staying longer than 5 years. So we went with the adjustable. Refi-ed two times since then, every time thinking we will be out before the reset 5 year term is up. Ha-ha. Still here, though we did save a bunch of money so far by doing the adjustable. So the last term expires this coming spring, and we are in fact looking to refinance again. I’d like to take the fixed this time, but can it really be that we will stay in this house longer than 5 more years? Need to think…

  9. Fantastic! Congratulations. I’m on the fence about a refi right now. Would take about 4 years to break even. But we’ve already been here longer than we thought we would, so who knows? Anyway, that’s great for you.

What say you?