Works for Me Wednesday – Refinancing

May 27, 2009 at 10:58 am 1 comment

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Almost seven years ago we built our first house. We didn’t think it was something we’d be able to afford, but the construction company my husband works for gave us a discount, we were able to get a much nicer house that was brand new, instead of continuing to search for “used” homes not staying on the market very long. We were very fortunate to have this opportunity. Of course, we could not afford to build our dream home, but we are happy with what we were able to build.

Our goal was to put down at least 20% down to avoid escrow, which we did. Our mortgage was for 30 years at 6.625%. Mortgage rates are currently very low. We received numerous letters from our mortgage company about refinancing, and actually looked into it a year or so ago, but it still would not have been worth it. However, about two months ago, my husband looked into refinancing again and found that we could get a 15 year mortgage and have lower payments than our 30 year mortgage. It made sense, so last week we refinanced. Mostly this worked because we paid extra on our mortgage for the first five years. When I lost my job two years ago, we stopped paying extra, which was hard to me to do, since I really wanted to pay off our mortgage in 15 years, which we were on the path to doing.

Refinancing worked for us. If you are not sure, call some places to see what their current rates are. We ended up going through a regional bank that allowed us to choose from at about 10-15 different mortgage companies, so we chose the deal that worked best for our situation. We now have a new mortgage company and are getting a better deal than what our old mortgage company had available. It pays to shop around.

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Entry filed under: Home/Household, money, saving money. Tags: , , .

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1 Comment Add your own

  • 1. kasey  |  May 27, 2009 at 2:03 pm

    We are in the process of remortgaging today. The appraiser came over today. Hopefully everything will work out and we’ll save some money!!

    Reply

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