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.