I could have been bogged down by a typical Tuesday, but Chris e-mailed me this morning to wish me a Happy 'Out of prepayment penalty' day! How could I forget? Three years ago we signed the papers to close on our home. Three years ago we made one of the most misinformed financial decisions. Today we celebrate making it three years against the odds, and we are free from a hefty prepayment penalty! I find it is easy to get lost in the forest and forget to celebrate the small victories. I just wanted to take this moment to revel in this victory.
We should close on our refinance by the end of this month. It is not all we had hoped it would be. We will only refinance the 80% portion of our loan, but that will bring the interest rate down to 5.5%. If home values don't increase in the near future we will probably stay in our home a few more years. No matter what we will still save money, and we will not be subject to the formidable ARM. With inflation on the horizon I am truly grateful we will not be in danger of an increasing rate.
Time to get back to work.