We did it!

And I totally did a happy dance.  It looked like this.

And this.

And this.

And then we went to McDonald’s for breakfast.

{Aside: it has been literally years since I have been inside a McDonald’s, and over a year since I have patronized them at all.  When did they get so swanky looking?  And the mocha frappe is neck and neck with my beloved Starbucks mocha frap.  You’re on notice, Starbucks.  Step it up.}

After months and months of hemming and hawing and should we or shouldn’t we and won’t it be a big giant hassle, we finally pulled the trigger on refinancing our mortgage to a lower interest rate, and closed on the new loan today.  We were being bent over a barrel at an appalling 8.1% because we bought our house in 2006 when the market was booming and rates were {obviously} super high.  We were able to reduce our interest rate to 3.75%.  Which reduced our monthly mortgage payment by {brace yourselves} FIVE HUNDRED DOLLARS.  Well, technically $494.  But it’s more fun to say FIVE HUNDRED DOLLARS, so I’ll round up.

You guys.  That’s almost $6,000 a year.  That’s a week of tuition for the boys and then some per month.  That’s a pretty ballin’ car payment.  That’s… that’s… well, that’s a lot of money to me.

And I’ve already got grandiose plans of how it will be allocated.  First off, an extra $150 a month into savings right off the bat.  If I don’t budget it I won’t miss it, and I can’t be trusted to always move money over every month because let’s face it, I can always find something to spend money on.  Next, $50 a month to each boy’s savings account.  Contributions to their account practically stopped when the Unthinkable happened, so it will be nice to start putting a little college money away again.  That leaves $250 to go into our discretionary spending.  And that, my friends, is nothing to sneeze at.  That’s a grocery trip, or a power bill, or a nice pair of shoes for every family member.  That’s a little extra breathing room at the beginning of the month where previously there was quite a pinch.

The process was so easy.  I literally just made a phone call and exchanged a few e-mails.  All the application documents were e-signed, our mortgage processor called me a couple of times to give me updates and instructions for closing, and we scheduled our closing two weeks earlier than estimated because the paperwork was approved early.  We showed up this morning at 9am at the law firm that handled our closing, and were prancing out the door by 9:30.  I am kicking myself for waiting so long.

This isn’t our forever home {hopefully}, so we focused instead on putting a little more money in our pocket rather than paying down the mortgage as quickly as possible.  It lost so much value when the housing market took a crap, that I know we’re going to get hosed when the time comes to sell.  I’m hoping that we will be able to move in the next three years or so, and the savings from refinancing will hopefully offset most of what we will lose in the sale of our house.  Hopefully that will still leave us with a good chunk to put down on a 15 or 20 year mortgage.

ADULT PROBLEMS, YO.

Anyway.  This is a very good thing for us, and a very much needed boon to our family economy.  I am already so excited to make that first mortgage payment and see what our monthly budget starts shaping up like.  What a great way to start off 2013!


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