Refinancing My Home Was the Best Thing I Did for My Family | oid

My husband decided to go back to college and that was fine until we saw the huge bill in college repayment loans. The looming $ 50,000 of the college bill was going to add a whopping $ 700 to our monthly budget. With two small kids at home and me working only part time, there was no way our income was going to be able to afford the monthly payments; moreover our income was unlikely to go up any time soon. The only choice was to refinance and God was I thankful for it. I don?t know why I steeled myself with a book on property rights and the goodness of titles when I bravely walked in to meet the mortgage broker for the refinancing. All I understood was that by rolling in the $ 50,000 into the remaining mortgage and with a lower interest rate on a 15-year conventional loan, we were going to be able to pay our mortgage with a lower monthly amount and still manage to pay off in full my husband?s college bill. Those lower numbers were all I needed to see.

Perhaps it was the book in my hand and the discussion that ensued between the mortgage guy and me about underground or black economies of Latin America and Asia or whether I hid my fear well, the mortgage guy was impressed and lowered our interest rate by another quarter percent to a good 4.6 percent from 6.6 percent.

Now in 2012 with interest rates at a historic low, I?m getting ready to refinance again. It?s those college expenses and this time it?s our son getting ready for college and we have to again come up with big amounts of cash which we don?t have. I contacted a bank and went there much wiser than the last time and minus a book. I also didn?t need any props for my confidence and couldn?t be happier with the interest rate of 3.0 percent on a 15-year conventional loan. Between scholarships, our monetary contribution, and his own addition of on-campus work, our son?s college expenses are looking well under control.

Refinancing is a great tool for people to pay off big amounts. What could be better than getting lower interest rates, having extra cash, continuing to stay in your home, and definitely controlling your financial condition. I was also able to redirect the extra savings into retirement funds and buy some stocks as well. But we still need to remember that this loan needs to be paid off sooner or later. It pays to get wise about financial matters especially ones that affect you, your family and your life. Do your research, compare rates, and go for the best deal.

Source: http://oid.cc/?p=705

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