Friday, December 12, 2008

Refinance? YES!

We have a heloc and our mortgage as our only two debts left. We have about 24 years on our first mortgage and 10 years on our second mortgage. We just locked into a 4 7/8% FIXED rate 30 year mortgage. No points. We are combining both, and although it puts us back to 30 years (not a big deal because we are not retiring in this house) we are saving approximately $675.00 a mos. in mortgage payments. I could put the $675.00 toward the house payment anyway and pay off the house completely in 15 years....but it's nice to know that if I needed the extra cash, I would have it.

I have never gotten such a low rate before....and believe me, I wanted to take cash out to do some home projects. But I refrained. I did not want to go further into debt.

We will probably close on the refi in the middle of January, and I'm anxious for the savings...

The bonus? There will be no Christmas debt to pay off in January either...

And speaking of bonuses....there probably will be none for my I am so glad I paid off most of our debt last February when he received a good one!

If you need to refiinance because of a high interest rate...the time is now...the rates are LOW!


jpkittie said...

Wow! That is amazing! We have thought about it - maybe we will look into it a bit more when DH gets back to work (hopefully the first of the year)

So happy for you in your new found savings!!!

CT Mom said...

I agree - amazing! We have 9 years left on a 15 yr mortgage and 7 years left on a 10 year HEL. Considered refinancing, but we've passed the sweet spot where we're paying more principal than interest on both.

$675 - that's significant!

No raises or bonuses for us either, but we're ok even so. Paying off the SUV saved us $600+/mo payment.

Many blessings to you in the new year!

Canadian Saver said...

That is no small amount of money you'll be saving each month... I know you'll use it wisely :-)

Anonymous said...

Great rate. I can't wait to be debtfree except for the mortgage.

Anonymous said...

Hey Sharon!!

Just thought I'd drop a quick comment. I was out of civilization for a while taking a trip through Mozambique with one of my best friends. I'll write a blog post about it soon.

Way to go on the refinancing!! I agree with you, it's a good time to get a fixed rate now with the interest rates being low in the USA.

Take care & enjoy the holidays coming up. :)


Grace. said...

Good to see the kind of shape you will be in to start 2009--congrats!

Sharon said...

Thanks for all your kind words!!

CT Mom, 7 years left is awesome...I'm a bit jealous! :)