Friday, November 05, 2010

Refinance...

I kept hearing how the interests were dropping and I was debating whether or not we should refinance. We bought the house at the end of May so we have only owned this house for 5 months. When I weighed out all the pros and cons of doing it and talked to Jeff we decided we were going to go for it. When I called to get the ball rolling on the refi we got an interest rate that is one whole percent lower than we had 5 months ago. Which is AWESOME. We are going to be essentially starting over but will have only lost 5 months in this house. When talking to my friend and mortgage broker the rule of thumb is if you can recoup your closing cost within 4 years then it is worth to refi especially if you plan on staying in your house for the long haul which is what we plan. We will recoup our closing cost in about 2 years! All the money responsibilities have always fallen to me. I am the one without the outside of the home job and I do all the shopping for the house and pays the bills. I actually enjoy dealing with the household finances, I always have. It works great for us because Jeff dislikes dealing with bills and making sure there is enough money to pay for things. The only funny part of the whole interaction with the refi is that I was the one on the phone talking to the bankers and mortgage brokers but in the end I sign nothing because I don't make any money so the loan isn't in my name but in Jeff's. It's a good thing that he trusts me :)

6 comments:

Anonymous said...

Yes Tonya it is a great time to refinance. Matt and I just did and we got 3.22%- that is crazy. Hope it all works out well!
~Stacy

Tonya said...

Wow that is really low Stacy. We didn't get that low but are certainly happy with what we did get :)

Amber said...

I'm the same way...in handling all of our finances. We just closed on our refi less than 2 weeks ago (it took over 2 months to close). We went to a shorter term loan, but are still saving quite a bit each month (we've been in our house 6 years).

Your friend that got 3.22....that's AWESOME! We are at 4.25, and I thought that was good.

Tee aka The Diva's Thoughts said...

Yep! This is certainly a great time to refi.

Sandra said...

I know right, it's funny how the unemployed woman does all the leg work, but when it comes time to sigh, the bank is like, "Umm...give that pen to the man!" I went through the same thing last year.
Congrats though, what a great feeling!

Sara said...

As rates are going quite low, it's really a great time to refinance your existing home loan and take advantage of the low rates.

However, it should be remembered that in order to get a refinance, you should have equity in your property. Apart from this, your credit scores and debt to income ratio as well as a stable financial situation will be taken into consideration when the lender approves you for a refinance.

In order to refinance your home loan, you will be liable for paying the closing costs. If you are staying in the property for the next 3-4 years, then you'll be able to offset the closing costs.