Monday, January 7, 2013
Don’t they always say that in order to figure out what type of plan you want to do, you must educate yourself.
Well, that’s what we did today.
We’ve been talking about possibly refinancing our mortgage to get a lower interest rate (rates are currently around 3.625% and we are still paying 5.25%). Our largest bill each month is of course the mortgage, so anything we could do to get the bill more manageable would be a good thing. However, we really didn’t know what was 100% involved with that process, so we always just thought about it.
But today we actually met up with our mortgage representative and got informed.
Turns out that we have an FHA mortgage loan right now. We could qualify for an FHA Streamlined Mortgage, which would allow us to get a new mortgage at the lower rate.
Our first year MIP (mortgage insurance premium) would only be 0.01% of the total loan and our monthly PMI (private mortgage insurance) would only be 0.55% of the loan amount
Our mortgage payment would go down by about $250!!!!
We have to pay closing costs again out of pocket
We would revert back to a 30 year mortgage
We’re going to think about it some more, but now that we know more, I think we’re going to go for it.
It sure would be nice to save the extra money!
It’s a LOW-CARB day today as I weigh in tomorrow…hello eggs and salad!