This is just a quick note to say that we closed on our mortgage refinance yesterday, and are now the proud new owners of a 15 year, fixed-rate mortgage at 4.875%.
For the sake of comparison, we were 21 months into a 30 year fixed rate mortgage at 6.375%. The original balance on this loan was $175, 000 and we had a total of roughly $370, 000 in remaining payments (including interest, but ignoring pre-payments). In contrast, the new mortgage (we refinanced a total of $170, 000) will cost us roughly $240, 000 (including interest, but again ignoring pre-payments). The closing costs were minimal in that we had no lenders fees, just title-related costs.
The bad news (for you guys, not us) is that we came close to nailing the very bottom of the recent valley in mortgage interest rates. We could’ve eaked out another 0.125% or so by waiting a day, but rates spiked the day after that, and haven’t come back down since. As things currently stand, 15 year fixed-rate mortgages are in the neighborhood of 5.625% and 30 year rates are around 6.125%. Thus, you won’t be able to match the sort of deal that we got unless rates fall precipitously.