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March 12th, 2012 at 08:46 pm

I spoke with my bank and they offered me a great refinance.I'm getting more than I want, besides the first and second I'm going to get enough to pay off the credit cards, and the payments will be less than the one payment for my current mortgage.

However - it has to be a 'jumbo' and I'll be on a direct government loan (so they back it but my bank still administers it)and its not fixed. I never thought I would consider a not fixed loan - but this one is 3.125% for at least 5 years. In 5 years it will get adjusted, but not go up more than 2%. IT will keep getting adjusted every 5 years, but NEVER go more than 5% over initial (8.125%). And it will take at least 20 years to get that high, and that's only if interest rates rise.

I should have at least an extra mortgage payment a month if I consolidate and have no other debts (and we both keep our jobs). I ran the numbers and that would allow me to pay off the mortgage in about 10 years. I'll be 10 years from retirement.

Since k and I aren't married we have to both be on the line to initiate the loan, so we're going to do it at 7am tomorrow before he goes to work. We're talking a May closing and first payment July. Its a full doc loan.

Sure will be a lot simpler to consolidate all of this.

3 Responses to “Refinance”

  1. mjrube94 Says:

    Wow, that sounds great. Good luck!

  2. PurpleLight Says:

    I called this AM and have already been approved. I have the application package and will be signing tonight. Lots more paperwork than I remember.

    The only slight hitch is what the house gets assessed at, its a bit of a wild card now a days. It needs to come in a little bit better than the estimate on zillow to make the numbers work, its 83% and I need 80%. We'll see.

  3. Jerry Says:

    I hope it all works out for you. I would be nervous about a non-fixed loan because I prefer the insurance of the rate staying rock solid, but it seems you have it worked out and it ought not lead to too trouble for you. Good luck!

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