Possible Refinance??

Jul 15, 2010 @ 08:40 am by EMS

All of the talk about mortgage rates being at an all-time low finally got the best of me.  I called our Mortgage bank and asked about a possible refinance and the rates/costs involved.  They offered me what appears to be a no-brainer and I wanted to post it on here to make sure I’m not missing something…

Our current mortgage rate is 5.75%.  We’ve lived in the house for slightly over 4 years and have no intention of moving in the foreseeable future (hopefully until after the kids are grown).  The new offer is a “no fee” refinance at 5.125%. While this is a higher rate than I was shooting for, the fact that there are absolutely no fees and the process shouldn’t be too much of a hassle, this seems like a no-brainer to me.  I could get the rate down to 4.75%, but I’d pay about $3,000 in closing costs to get that.

So, basically, I’d be lowering my monthly payments by $174, but increasing the term of the loan another four years.

If we do this, my plan would be to continue paying what we are currently paying on the mortgage and have the difference applied directly to the principal, thus getting us back down to paying the loan off well before the full 30 years expire.

Am I missing something here?  Does this sound like a no-brainer to anyone else?  Please use the comments to post your thoughts.

June 2010 Net Worth Report (-3,291)

Jul 07, 2010 @ 07:30 am by EMS

With a general market decline and our family vacation, June was another negative month for us.  The good news this month was that I was able to bundle our family vacation with a work conference, so we didn’t have to pay full price for the lodging, etc… and I was able to not burn up any vacation days.  We also outpaced our stock index for the first time since we’ve been tracking it on this site.

One interesting site that I’ve added to our portfolio is SmartyPig.  You basically use the site to create an automated savings goal and earn a decent amount of interest in any money that you move there.  As a test, I setup a savings goal for a planned iPad purchase in late September.  Every 2 weeks, SmartyPig will pull about $60 from our checking account to apply to saving for the iPad.  If all goes well, I may use this site by saving for next year’s vacation through it.

July 2010 Net Worth



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