Found More Money!
Money & Finance - - Posted on January, 26 at 10:03 am
Rates have dropped again and many think they will continue to drop. As such, Mr. Wonderful and I decided that we should look into refinancing our house, which would add over $100 to our monthly cash flow. Although we would love to move into a new house we’re trying to restrain ourselves in order to pay for our wedding because we will never again have a lower house payment than we do today. (Although speaking of the wedding, I’m happy to report that I think we’re going to come in under budget by $500 on the florist. But to be fair, the limo will be about $300 more than budgeted. I still think overall we’ll come in under budget.)
Anyhow…back to refinancing, we figure even with closing costs it will work out to our advantage to refinance our 6.99% mortgage if we stay here at least one more year. The money we’ll save each month will more than make up what it will cost us in closing fees and if we stay longer than a year it works out more to our advantage. Plus, get this, if we can get the 5.375% rate quoted to us then our house payment will be almost $100 less than his monster truck payment! Also, with all the updates and remodeling we’ve done we’re hoping it will increase the value of the house which may allow us to pull out more equity if we so choose. Although under normal conditions I’d rather put extra and pay off the mortgage early, but considering our credit union is paying 6.01% and if we can borrow at 5.375% that means we can MAKE money on the the equity and put it back after the wedding if we don’t need to use it. I’m all about creative financing IF you can be disciplined about it.
On top of that, if we get our quoted rate our mortgage payment will go down $140 a month with the same amortization schedule. Which means more money to go towards the wedding! When that’s done if I want to instead add just $35 to what I’m already paying each month we can cut the amortization in half, from 30 years to 15 years.
Just thought I’d share a few things we’re doing to take advantage of dropping interest rates.
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