Taking advantage of the down-turn
I just returned from 1st Metropolitan Mortgage in Santa Fe where I refinanced my current mortgage. My previous mortgage was a 30-year fixed loan with a 10-year “interest only” option. So for the first ten years I would only pay interest on the loan, but the principal (loan amount) would stay fixed. After ten years I would pay principal+interest, which actually begins to reduce the loan amount.
I did some number crunching over the past few days and it turned out that the lower interest rate make a huge difference. After the refinance I’m paying slightly more every month, however I’m paying down principal immediately. This is going to safe a huge bundle in the coming years.
I expect to close on the new loan in a few weeks …
Bist a Hundling Hiasi!