CNN Money reports this week that mortgage rates for owner occupied homes has dropped again to 3.62% from 3.66%. If you haven’t yet refinanced, you might want to get the ball rolling on it this week.
We are currently looking to a do a refi and we’ve chosen to work with a local brokerage who can shop around for us for the best rate. We hope to finish the underwriting by the end of next week and lock in a rate of no more than 3.79% for a 30 yr fixed mortgage. As we didn’t refinance previously, our current mortgage rate is 5.65%, which means we will have a considerable monthly savings, as much as $400 or more per month. Better yet, since we are already accustomed to paying the higher payment, we can simply keep the payment the same, roll the extra funds into the principle, thus turning the 30 yr into a 15 yr mortgage term.
Or we could invest it into our kids’ college fund. Or finally remodel the obsolete bathroom with the giant pink tub. Or even invest in a rental property. But regardless, we’ll finally have a bit more wiggle room, so our home ownership is finally paying multiple rewards!