We considered refinancing our home loans quite a few times over the last few years. We refinanced both of our properties in 2009, but rates continued to fall to historical lows between now and then. We went back and forth about paying extra principal or refinancing a couple of times. Finally as the rates continued to fall I couldn’t sit still any longer. The following details convinced me to apply for two brand new 10 year mortgages.
| Original Loan |
| Mortgage Amount: |
$400,000 |
| Interest Rate: |
4.500% |
| Term in Years: |
15 |
| Years Remaining: |
13 |
| Monthly Payment: |
$3059 |
| Interest Remaining: |
$142,355 |
|
| New Loan |
| Mortgage Amount: |
$335,000 |
| Interest Rate: |
3.125% |
| Term in Years: |
10 |
| Years Remaining: |
10 |
| Monthly Payment: |
$3254 |
| Total Interest: |
$55,498 |
|
Interest Saved: $86,857
| Original Loan |
| Mortgage Amount: |
$377,000 |
| Interest Rate: |
4.500% |
| Term in Years: |
15 |
| Years Remaining: |
13 |
| Monthly Payment: |
$2884 |
| Interest Remaining: |
$124,907 |
|
| New Loan |
| Mortgage Amount: |
$325,000 |
| Interest Rate: |
3.500% |
| Term in Years: |
10 |
| Years Remaining: |
10 |
| Monthly Payment: |
$3213 |
| Total Interest: |
$60,654 |
|
Interest Saved: $64,252
Total interest savings just over 150,000.
I think this will be the last time we refinance. So far we transitioned from a 30 year mortgage to a 15 and now from a 15 to a 10. Each time we refinance we trim years off the life of our loan. Now that we’re at 10 years I can’t imagine us refinancing again, because I do NOT want to extend the life of my loan ever again. The interest savings is HUGE, but more importantly I LOVE the idea of paying off my debts in the next 10 years!