Of course, anyone that knows me knows that I don't "relax" very well. I have a huge tendency to burn the candle at both ends. In fact, if I could find a third end to burn on that candle, I'm sure I'd try... So, here's what happened...
The day before we were leaving for a trip to Stockholm, Sweden, I saw an email from my credit union. They were advertising a mortgage special; a flat fee of $799 (in my situation, I don't even need to buy an appraisal). I know one of the mortgage officers there, so I quickly shot her an email. She knows me quite well, so immediately asked:"Aren't you supposed to be in Sweden?" She knew I couldn't resist a deal that could possibly save me a lot of money, and boy is it going to save me some serious money!
What I have currently is a 30 year fixed that started in 2011. So, I have 24 years remaining on it. The refinance will lower my rate by almost 1%. That doesn't sound very exciting, does it? Don't be deceived! Because I would be refinancing to a 15 year fixed, the total savings would be $99,970! That's some serious dough! Side note: I personally would never refinance my mortgage if it meant paying a loan for longer. I know there are people with valid reasons for doing so, but I would avoid it.
Now, my payment would increase by about $150 per month, but this is a rental. The rent being paid by the tenants more than covers the difference. Now, let's add another exciting dimension to this scenario. If my partner and I put an extra $100 per month to the mortgage, we will pay it off 2 1/2 years sooner. That means that we will save even more money! It also means that in roughly 12 years, none of the rental income will be paying a loan. It will truly be passive income!
Needless to say, we are going through with the refinance and planning to save a boatload of money, while paying the loan off significantly sooner!
Have you ever refinanced your mortgage? Did it save you a lot of money in the long term? Alternately, are you considering a refinance now? Have you figured out what your overall savings would be?
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