$0 First Mortgage – I Wish

Checking my bank statement online, I verified that my refinancing has gone through. The existing first mortgage has been paid in full and my account statement shows a ZERO balance. Alas, the new mortgage should be showing up any day now.

On the bright side, I replaced my 5 year ARM with a 30 year fixed mortgage. Although I didn't pay any closing costs, my new mortgage is at a slightly higher rate than the ARM (I had a great rate). Furthermore, my payments will be based upon a 30 year term instead of the 25 year term. At first, I was going to "pretend" I had a 25 year mortgage and pay enough to have the home paid off in 25 years. After further review, I have decided to pay all the extra money towards the HELOC. My goal is to pay off the HELOC in 5 years. Once that occurs, I will take my Heloc payment and apply it to the first mortgage.