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The Real Vic Mackey
- Joined
- Dec 29, 2005
- Messages
- 5,277
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We had our current home built in 2008 and closed in Dec of 2008. 0% down on a 30 yr fixed VA loan at 5.5%.
We just refinanced 2 months ago to a 30 yr 4.5% VA loan. Total closing costs (excluding escrow prepays) was about $3k. We're saving almost $200 per month. And the best part: the closing costs will be recouped by December. Let me explain:
We built in 2008 but did not get assessed for taxes until February/March of 2010. Of course that caused our escrow account to go in the red big time and increased our payments by almost $500 per month for April - December 2010. The refi corrected the escrow and saved us $200 per month on the principle/interest + $500 per month in the negative escrow.
By January 2011, we'll be almost $10K ahead of where we would have been if we had not refinanced. With the refi I switched to paying 60% of the payment every 2 weeks. With this method I'm paying 50% more per year that ALL goes to principal.
We just refinanced 2 months ago to a 30 yr 4.5% VA loan. Total closing costs (excluding escrow prepays) was about $3k. We're saving almost $200 per month. And the best part: the closing costs will be recouped by December. Let me explain:
We built in 2008 but did not get assessed for taxes until February/March of 2010. Of course that caused our escrow account to go in the red big time and increased our payments by almost $500 per month for April - December 2010. The refi corrected the escrow and saved us $200 per month on the principle/interest + $500 per month in the negative escrow.
By January 2011, we'll be almost $10K ahead of where we would have been if we had not refinanced. With the refi I switched to paying 60% of the payment every 2 weeks. With this method I'm paying 50% more per year that ALL goes to principal.
