After an excruciatingly LONG & ridiculous week, I am SO thankful it’s the weekend, (but so sad that tomorrow is Monday already). Chris FINALLY made it home on Friday, after being out of town (again) all week. That was week number 5, and I am SO thankful that he plans on being home this coming week. Hallelujah!
We met up at the bank at 1pm so that we could finally close on our re-finance. Man, that was a long (but not difficult) process! After reading THIS post on Words of Williams blog back in February; Chris and I had several talks about refinancing our own home. I know, you’re probably confused because 5 minutes ago we had our house on the market, and now we want to refinance. Yah, we can’t make up our mind.
Our home loan used to be through Mid Florida Credit Union (if you have the chance to use them…don’t) – In 2013 they started a new thing where they sent us paper statements every month vs. those payment books. So when we got the statement we could actually see where our money was going. $273 towards our escrow for taxes/insurance. (yeah, our taxes/insurance are ridiculous)… (never live in a flood zone. it’s not a money smart choice) $5xx towards INTEREST (excuse me, what?) and a measly $17x towards our principal. Seeing that breakdown in February pretty much SEALED THE DEAL. (We definitely NEEDED to refinance) We were paying WAY TO MUCH interest. Seeing those numbers made me sick.
When we bought our house in 2010, I guess the interest rates were high – to be honest, I paid no attention to the whole buying process. I wasn’t on the home loan – Chris dealt with pretty much the entire process. I just showed up to closing and signed some papers. (not smart on my part, not smart..don’t do that. be involved).
I started looking around & playing with every single mortgage calculator known to man to try and figure out what kind of rates we could get and how much it was going to cost us. Eventually I gave up and called BB&T; it took them about 3 weeks to get their act together and call me back, but we weren’t in a rush, and we were still thinking about whether or not this was something we really wanted/needed/could do.
BB&T was/is offering low closing costs, with a rate of 3.74% for 15 years. After some calculating we determined this would raise our payment about $100.
Some stuff happened, blah blah blah, we ended up adding more to our loan and at signing we are paying about $221/mth more.
and now in picture form:
Overall I am very pleased with the process and happy to be free of Mid-Florida. Paying more is not fun, but 15 years is so much better than 30.
Obviously refinancing would not be ideal for everyone, but it was definitely ideal for us. I realize this type of post is way outside the realm of what I normally post, but this was a great learning experience for us, and definitely eye-opening.