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Monday, November 7, 2011

The refinance dance

D and I bought our home in June 2001.  Our interest rate was 7.16% on a 30-year mortgage.

In 2002, we refinanced at 6.50% on a 30-year and shaved $119 off our monthly payment.

In 2003, we refinanced at 5.50% on a 30-year and dropped $137 off our monthly payment.

In 2009, we refinanced at 4.971% on a 20-year mortgage.  Our monthly payment went up by $17.

Today we refinanced again at 3.75% on a 15-year mortgage.  Our monthly payment will be going up a whopping $3 a month.

Over the years we have made extra payments on the principal.  I believe we have about 45% equity in our home now.

Our first payment will be Jan 1, 2012, but we will make an extra payment at that time with the goal of putting any extra dollars towards the mortgage and paying this baby off in 11 years or less.

Fingers crossed.  

2 comments:

Swistle said...

TELL ME: how difficult is refinancing? We should REALLY REALLY do it, but I'm SO NERVOUS about The Unfamiliar. I don't know what it will INVOLVE, and every time I try to research it I find one million warnings that make it sound as if starting the process is like ASKING to be screwed over by a bank that will be trying EVERY TRICK IN THE BOOK. It's all "MAKE SURE IT'S NOT TOO MANY POINTS" and so on.

Refinance Nashville said...

Refinancing your home loan enables you to replace your existing home loan with a new home loan with better terms while giving you the opportunity to get cash back from the equity you have built in your home.