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:
- Our payment went up by $43
- I am no longer going to be escrowing our tax and insurance payments I will have to do that on our own.
- We reduced our loan from the current 13 1/2 years to a 12 year loan.
- We lowered our interest rate from 3.75% to 2.875%
- We will save almost $20,000 in interest over the life of the loan.
- 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!