Home Refinance Update…We Saved $20,000

Home Refinance Update…We Saved $20,000

So it is amazing what can happen in just a couple of days with regards to one’s finances. On Wednesday I wrote about how my debt train my be derailed from a little financial snafu that occurred. I found out that I had accidentally set up automatic payments when I paid my mortgage ahead. Because of that the bank took out a payment when I wasn’t expecting it.  That extra payment left me over $1600 in the hole, plus we just spent another $580 to have some trees trimmed and removed in our backyard. So that was over $2200 in the hole in a short period of time.

Yesterday, I learned that the payment that had been made was actually returned to the bank, which is actually a good thing. Even though I was charged an overdraft fee on both ends that $50 in payments is much better than $1600. I can cover the $50. And I could’ve covered the $1600 as well, but it would’ve taken a bit too long. The end result of this is while the payment wasn’t taken off my mortgage my financial debt train seems to be a bit back on track. Good news on that front (although I might slow it down just a bit to make sure I have the dinero in place).

Better news even. Yesterday I talked with our mortgage specialist and he says the title search on our home and their drive-by appraisal revealed that we have the 80% LTV in order to refinance. WOO HOO! Earlier I discussed what this refinance would look like. The long and short of it is this:

  1. Our payment went up by $43
  2. I am no longer going to be escrowing our tax and insurance payments I will have to do that on our own.
  3. We reduced our loan from the current 13 1/2 years to a 12 year loan.
  4. We lowered our interest rate from 3.75% to 2.875%
  5. We will save almost $20,000 in interest over the life of the loan.
  6. We didn’t have to pay any closing costs because of the type of product offered.

Mrs. ROB and me close on the loan within the next two weeks.

We still have a long way to go to financial freedom, but this will bring us a little closer. Now if I could just have Santa Claus pay those student loans of Mrs. ROB’s things would be great!

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