mindways: (0)
mindways ([personal profile] mindways) wrote in [personal profile] jducoeur 2011-11-05 04:04 am (UTC)

I will admit to being slightly surprised that you're refinancing this soon after the purchase, though -- significant interest rate drop since you bought?

Not large, but not trivial: 3/8 of a percent lower, paying very little cash to do so. Naive payback time (ignoring mortgage interest deduction, future value of money, etc) is about 2-3 years, and we're planning on being here at least 10, if not 15-20, so the math makes sense.

(It could have been even better to pay points and get an even more ridiculously good rate, but we're hurting for liquidity after the renovations, and - strangely - at the time we refinanced, points wouldn't have lowered the rate a huge amount, making the marginal benefit slim.)

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