You would think I ‘d know better. I am in real estate after all. But I got too caught up in the mortgage/real estate/job market/Wall Street mess, and the whirlwind of media negativity, to see that mortgage rates had dropped SOOOOO LOW that I could have saved a lot of money EACH month, if I had refinanced. Luckily I wasn’t too late to miss the boat in its entirety. I had grown complacent with my 5.75% interest rate since I had refinanced it several years ago when rates were at “historic lows”. I saved on my monthly mortgage from when I originally purchased my home, so thought I was okay. I did the calculations last week and, based on a rate of 4.625% for a 15 year loan, realized I would save $544.77 each month and that in less than a year that savings would pay for the closing costs associated with refinancing.
If I were to take a portion of my monthly savings and use it to pay down the principal balance on my loan and another portion to invest in my retirement fund, I would still have a little extra spending money! Needless to say, I filled out the paperwork today. What are you waiting for?
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