Buying a new house? How long do you plan on staying there? If you plan on living in this home long-term, you may want to look into paying points on your mortgage. You may pay more up front, but the savings in the long run can be significant.
My wife and I have been working on getting our finances in order….budgeting…paying off debt…etc. With this new “cut corners” mentalitiy, I started looking at the current interest rates and thought about refinancing our house. We are currently on a 30 year fixed at 6.82% rate. We talked with our bank. They mentioned a lower 5% interest rate for 15 years. Our monthly payments will still go up, but according to my math ( and online amortization calculators ) it is only about $180 a month. I will save over $110,000 throughout the life of the mortgage.