[Finances] Adjusting

[digitaldiscipline]

So, my ARM adjusts this month.

Downward.
6.29% to 5.75%

Yeah, I did see that coming when I signed up to do the refi three years ago.

This reduces my mortgage payment by about $50. Not a hell of a lot, but that's still less. If I don't make any changes to how much I'm paying, the house will be paid off about a year sooner (sometime around July, 2017). The bankrate.com calculator I was using doesn't make allowances for the fact that I pay half-plus my mortgage every two weeks, for an extra full payment each year, in addition to the extra principal every month, so I'm having to guess a little with my calculations for the amortization.

The question now is whether it's worth absorbing the cost of a fresh refi for a savings of another point and a quarter (just a quarter point straight, but as an employee, I get an extra 1% savings), but pushing the term back out to a full 15, 20, or 30 years. On the one hand, I'm reassured by having and building up equity, and seeing that, holy shit, I'll own this place free and clear in nine years. On the other, having more liquidity month to month is attractive as hell from a paying off high-interest debts and having fun standpoint.

Comments

[ruefullyamused.livejournal.com]

See, this is what happens when *smart* (or at least nominally cautious) people got ARM's. No wonder you didn't express any offense at my strident "no bailout" posts, heh.

Congrats!

[y2kdragon.livejournal.com]

Thing is, don't expect interest rates to go much further down. It might be worthwhile just to lock that rate in for some period of time. If, at the current rate, you can pay off in 9 years, you can possibly look into a 10-year-loan. I would say it's at least worth checking out. Worst thing is that you don't change anything at all right now.