Refinancing

You really hear a lot about refinancing these days. I never really thought too much about it. Figured it wasn’t for me.

Refinancing? I don’t need no stinkin’ refinancing.

Right.

Guess who’s refinancing this week? We are.  We’re switching from a 30 year loan at 6.25% to a 15 year loan at 4.35%.  If we had continued to pay our regular monthly mortgage payment for 30 years we would have paid $158,000 in interest alone.  That’s the value of our whole house! Instead, over 15 years we will pay $47,000 in interest. Much better. Instead of $150 each month actually going to principal, we’ll be paying almost $500 each month to principal. And our payment is only going up by about $100.

I just love refinancing.

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    • Suzanne Rohloff
    • December 7th, 2009

    Looks like a couple of smart cookies live at your house.

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