Saturday, January 10, 2009

Mortgage Refi

We have locked in a REFI for our home (the one we live in). We locked in a 4.78% fixed rate, no points on a 25 year loan (we are currently 4 years into a 30 year mortgage).

Now we've got to get the paper work done and hope the house appraises (here in So. Fla. there is a risk that our appraisal will derail the REFI).

Our plan is to continue to pay the same amount we currently pay each month (about $200 more than the new payment) in addition to paying an extra $250 a month to total $450 a month ($5400 a year) extra towards principal. Without paying anything extra towards principal, the REFI will save us @$75,000 in interest over the life of the new loan.

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