We finally signed the closing documents for the refinance on our mortgage yesterday. After fees, the math works out to an APR of just over 5%, and of course, APR is what really matters when it comes to figuring out our savings. We plan on staying in our house forever, and to continue paying the same amount that we do now, so the benefits of our refi will be substantial. We’ll save over $30,000 in interest and pay off our mortgage in 2031, two years earlier than our current payoff date in 2033.
It must be awful for the escrow company’s notary to have an attorney come in to sign closing documents. I read every sheet of paper and questioned multiple figures. I also questioned a couple of whole documents, including one that was completely irrelevant that we didn’t have to sign. It was an IRS form permitting the mortgage company to obtain copies of our tax returns – the form itself said something like “If completing form for a third party, do not sign if Lines 6 and 9 are blank” and of course, Lines 6 and 9 were blank. The notary had to call the lender, who said, “Oops, they don’t need to sign that.” I’d like to think nothing bad would have happened even if we’d signed it without reading it, but I hate to think of all the people who have given lenders permission to obtain their tax returns when it wasn’t necessary.
Finally, while we plan on paying extra on the principal every month, I must admit that a tiny part of me is glad to have the reduced monthly payment – just in case something bad happens and suddenly that $200 monthly difference becomes significant.
Now I just have to update our list of accounts.