Wednesday, February 27, 2008
I finally decided to get on the bandwagon and refinance my condo. I should have done it a month ago, because interest rates have gone back up. But it's still going to be worth my while to do it. I started out by going online and doing a rate comparison and one of the online companies had the best rates, so I filled out the form online to have someone call me. He did, and we talked....his offer was 6.3%, no points but he didn't tell me on the phone that closing costs were 3K. We discussed a 30 year vs. 15 year mortgage and he said there was no difference in rates for how many years you take the mortgage out. When he emailed me the application form, I wasn't thrilled about the closing costs, so decided to shop around. (which is what you should do, but I never seem to do then I get screwed.) Yesterday I went across the street to Mortgage Specialists. He told me just about the same thing, closing costs were lower but the rate was about the same. Then he said, in the interest of being 'fair' to me, that I'd be better off going to a local bank because they do better on small (under 100k) mortgages. So I left that office and went to my local bank. Sure enough, they were great.....and I got the feel of being treated like a person, since I've done my banking there for 20 years and they know me. They offered me 5.8%, no points on a 15 year mortgage. Their rate was lower for a 15 year than a 30 year. So.....because I'm switching from a 30 year to a 15 year, my payments per month will be about the same, but we will finish the mortgage right about the time we retire and overall, we will save about 65K in interest over the years. I feel good.....feel like we are doing the right thing, and happy that I have the modicum of financial savvy to even think of doing this. The best thing is...I bought the condo almost six years ago, right after I got divorced. When I got remarried almost two years ago, we didn't change the title. My new hubby has never owned anything...he always rented....so when we do this refinance, he'll be putting his name on the mortgage and be an official owner with me of our condo. Up until now, it's still seemed like "mine" more than "ours". Now it will belong to both of us.