I have been watching the mortgage rates for awhile now, to see if it would get into the territory where it would be beneficial to refinance. We already have a good rate, 5.75% on our 30 year mortgage, and we have 24 years left to pay. To refinance to a 20 year mortgage and get about the same payment, our rate would have to hit around 4.62%. 30 and 15 year mortgages have been in that territory for awhile, but the 20 year rates have hovered above that.
So today I was discussing the options with a mortgage guy who wants our business. He said that for what we still owe, $89000, the rate would most likely NOT hit the target we were hoping for. So I mentioned, "Well, we DO have this little debt." When we roll the $10,000 credit card debt on there, we can hit that target rate! So, for a payment only $75 more per month than what we pay now, our credit card and part of our other debt goes away and we pay our mortgage off 4 years sooner. Then I can take the money I was going to pay on our debt for the next year and pay down the mortgage, so we can be paid off even sooner than 20 years. Any way I pencil it out, it comes out to a good deal to me!
Our mortgage man is putting together the numbers for us, and I have also contacted two other companies. But hopefully VERY soon, you will see that column to the right drop by at least $10,000!