Wednesday, March 24, 2010


We are in the processing of refinancing our mortgage and *Whew*! What a job this is!! I had no idea that refinancing a mortgage is almost as time-consuming as taking out the original mortgage.

Our current interest rate is 5.625% and I am wanting to lower that to 4.something %. I found some awesome information at:
I have picked up a few tips along the way. For example, the lender offering the lowest interest rate may also be charging the most in points. Try to request quotes with as nearly identical terms as possible for comparison purposes.

It is also important to take into consideration that the actual cost of any refinance would end up chipping away at any savings you may get from the lowered rate. You'll need at least a 1 percent difference in rate to truly come out ahead. I had always thought that you needed at least a 2 percent difference, so this was eye-opening to me to read this!

Any thoughts, words of wisdom on this subject? Are any of you thinking about doing a re-fi yourself?



  1. In 2008, we did TWO refinances on our house. The first was to get out of the original adjustable rate mortgage. It also gave us a decent interest rate overall. The second time we were able to get another full percent off the interest rate. Because we were only months into our mortgage, it made sense. Even with closing costs, it will save us thousands of dollars over the life of the mortgage.

    I may be wrong about this, but the further into the mortgage you already have, the less a refinancing is apt to save you over the life of the mortgage. However, it may lower your payment, which is sometimes necessary to keep you out of the dog house if you're having cash-flow problems.

  2. I think that you are right..if you are further into the mortgage, the less you will save, because, if I understand this right, you pay more towards interest in the early parts of the mortgage, then in the later part, you are paying towards the principle. Right?

  3. Look at your email. My comment didn't take.

  4. Anne...your email was awesome and full of great info! Can I copy and paste it and put it on this blog?

  5. I would love it if you could -- I had some computer issues and couldn't get it in this spot.


  6. I re-fi'd in September. I started in July. It went smooth and I finally went from the original 8% to 5%. The reason it took nearly 17 years from buying was because my credit (and income but more the credit) was never good enough. I did a 15 year and saved $200 a mo which I put into savings.