Wednesday, March 4, 2009

Trying to Refi!

Tomorrow, I am sending in my proof of income to my bank for my attempted refinancing of my house. If things work out according to plan, the refinancing will:

  1. Leave my Heloc in place;
  2. Replace my 5/1 ARM (with one year to go) with a 30 year fixed loan.
    1. By locking in my rate, my interest rate is going up to 5.25%. While still a good rate, I am going to miss the stellar adjustable rate that I have been enjoying. The upside – less worry.
    2. No closing costs or expenses – nice;
    3. No appraisal – I don't even want to know.
    4. Because the refinancing will extend my loan term by 5 years, my "mandatory" payment will go down slightly. In a pince, that my help. Nevertheless, I will use excel to determine the appropriate payment to keep the actual loan term constant.
    5. With the loan fixed, I will begin paying down the Heloc with a goal of paying it off in 5 years.

Frankly, my bank has been awesome to deal with (so far). If it works out, I will make sure to name them by name.

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