I just found out I can take nearly two percent off of the interest rate of my mortgage by refinancing. That’s down into the four-point-something range. I almost feel a little guilty pursuing this, knowing that I’ll be doing my little bit to worsen the world’s economy… except when I consider the results of losing the ability to pay for my house at all. Less is almost always better than none.
Still, I am kinda happy about something I heard on the radio the other day concerning mortgage insurance. (This is insurance that protects you in the even that after you buy your home, it turns out that someone else actually has a better claim to it, and you lose everything.) Apparently, an alternative to mortgage insurance when refinancing is demanding that the bank prove that they actually own the home before you repurchase it from them. You save money, and you’re only asking the bank for due diligence which they should be doing in the first place.
What makes this all kinda iffy is how far property values have fallen. At one point our house was worth between twice and three times the note we held on it. Who knows how much it’s worth today. If it’s valued at less than the note, then we’re dead in the water. Wish me luck!