Early last year, we refinanced our mortgage because rates had gone down enough that we were able to get a rate that was 7/8% lower. This time, we will get a rate that’s another 2/3% lower, so we’ll be at 4.125% (I’m hoping that it will be even lower by the time we close, though I don’t think that’s going to happen).
The last time we refinanced, I was all about saving money and lowering our overall payments. But back then, I didn’t foresee myself no longer working at this point in our lives.
This time, I am all about the lower monthly payment. After all, I’ve quit my job and make a miniscule fraction of what I used to make.
We can certainly continue to make our monthly payment now, but I like the wiggle room that a lower monthly payment will give us. And we’ll continue to pay extra on the mortgage, just not as much as we used to. We may, in the long run, end up paying more for the house than we would have if we hadn’t refinanced. But we’re confident it will be worth it – I am so much happier now than I was when I was working full-time, and I think that as the kids get older, I’ll be even happier that I am around a lot. I’ve always wanted to have the house that the kids hang out at after school, so I know what my kids are doing.
I have to admit though, that I’d forgotten how much paperwork is involved in a refi. And, I’m waiting for the appraiser to arrive right now!