Save Money Refinancing
by Marenda Babcock
(Greenfield, Indiana)
How To Save $9,000 Without Really Trying
We refinanced our home several years ago. We had a 30 year fixed loan and we refinanced to make our loan a 15 year loan that would increase our monthly payment by only $15 a month but on the long term of the loan it would save us $9,000 in interest. This in addition to the fact that our loan would be paid off 15 years earlier was a win win situation for us.
It did cost us $300 for the fees charged by the finance company but it was well worth the savings our family gained.
Then a few years later we refinanced again. This time we were able to save another $3,000 in interest and shaved another 5 years from the life of our loan. We did a 1/2 a payment every other week. The effect this had was that we were making one extra payment per year. That extra payment was put directly on the principal none of it went towards interest.
Well the result was that we paid our home off before we reached the age of 50 when we were just 49 and it felt so very good to have our home paid for. It's always important to remember that the longer you borrow the money the more it will cost you in interest.
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