We're Getting a New Mortgage for Christmas!

[linda22003]

Normally that wouldn't be exciting news, but it is now. A mortgage broker we've used a couple of times called last night to offer us 4.5%. We have two small mortgages (well, small in DC-area terms) at 5.5 and ~6%, and we've never consolidated them because we didn't want to lose the lower rate.

Now that there has been this temporary plunge, we're jumping on it. He verified some of our information on the phone, and will be sending an appraiser in the next couple of days. He estimates that our mortgage payment will be about $1100 less per month (I think likely more), and we'll have the flexibility to pay extra on principal as lightly or heavily as we wish.

Our FICO score is over 800, we have secure jobs (as much as one can say that, these days), and have no debt at all other than the mortgage. We were living the "Dave Ramsey lifestyle" before we had ever heard of Dave Ramsey.

Sign of the times: he said that about 85% of the people who call him for new mortgage terms, he can't help, because they have negative equity.

[FlaGator]

Normally that wouldn't be exciting news, but it is now. A mortgage broker we've used a couple of times called last night to offer us 4.5%. We have two small mortgages (well, small in DC-area terms) at 5.5 and ~6%, and we've never consolidated them because we didn't want to lose the lower rate.

Now that there has been this temporary plunge, we're jumping on it. He verified some of our information on the phone, and will be sending an appraiser in the next couple of days. He estimates that our mortgage payment will be about $1100 less per month (I think likely more), and we'll have the flexibility to pay extra on principal as lightly or heavily as we wish.

Our FICO score is over 800, we have secure jobs (as much as one can say that, these days), and have no debt at all other than the mortgage. We were living the "Dave Ramsey lifestyle" before we had ever heard of Dave Ramsey.

Sign of the times: he said that about 85% of the people who call him for new mortgage terms, he can't help, because they have negative equity.

I refinanced last month and paid off everything. All I have for outgo now is a mortgage payment (15 years), tithe, utilities and groceries. It's a sweet feeling to be free of the unnecessary debt.

[linda22003]

Right you are. Some people are being forced to discover that way of living these days; it's much nicer to do it voluntarily and well in advance of hard times.

[Gingersnap]

Good for you! Mr. Snaps is considering refinancing at a lower rate. Our current rate is already pretty low, though, so we'll have to see what's out there.

[linda22003]

My husband just shook his head in amazement, saying that 4.5% was the rate his parents got on their first (and only) house in 1953. It's certainly the lowest I have seen in my house-buying lifetime. There's no prepayment penalty, so if I want to throw an extra thousand dollars a month on the principal, I certainly can.

[BadCat]

4.5 is great.
How much are the closing costs?

[linda22003]

I'm getting the whole proposal later today. I'll see what it says. He just wanted our go-ahead to lock it in for the next few days until he can get the paperwork done. He's always been reasonable before, which is why we've gone back to him.

[biccat]

We've been considering a refinance, and would probably do it since we'd save about $200/mo. (dropping rate 1.5 percent).

Except our builder is a dick, and we have a lien on our house for $500 that he didn't pay. :mad:

[linda22003]

$500 is nothing. Is it a lien you can pay to clear?

[biccat]

$500 is nothing. Is it a lien you can pay to clear?
Unfortunately, I don't know. Still waiting to get in touch with the builder, and an attorney. It's...complicated.

Christmas is not a good time to deal with this crap, too many people on vacation.