About 3 months ago, Tony and I started talking with my cousin's husband about our mortgage with Wells Fargo. Our loan didn't originate with Wells Fargo, but they bought it and so we began our refi conversation with him, as he works for WF.
Without being a reflection of our opinion of Chris, Tony and I were completely skeptical about the whole HARP2 situation. We'd heard of refinances going very well and of months of back and forth without resolution, so we didn't put too much stock into our options.
We hoped for a 15 year mortgage, which would barely raise our mortgage by $100/month, but knew that it was very unlikely, as the loan couldn't be for more than 125% of our home's appraised value. A little over a month ago we found out that we're, ooooh you know, a good $45K underwater on our home. Yikes.
So, we moved forward with the 30 year option. Being that we bought in 2007, just before the real collapse, we had what was at the time a good rate of 6.25%. We were offered 4.375%, which will give us a $311/month savings.
I don't know about your personal finances, but $311/month is a significant amount of our monthly income. And, suddenly, it's ours again, to do with as we please.
Oh, oh! And we don't have a mortgage payment for the month of June!
Are you thinking what I'm thinking?
Unless you're also a weird Dave Ramsey follower, probably not.
Because what we're thinking is that we can put our 1 1/2 month of mortgage payment plus the additional $311/month towards debt reduction!
Friends, this whole pay off our debt, minus our mortgage, so that I can do photography at home with my kids is gaining a lot of traction. As in, Tony and I have a proposed quitting date. Mind you, it's at least a year or two away, but we can pinpoint it!
Also, the reduced mortgage payment puts us in a greater position to potentially rent our house in the future!
God is good.