About 2 or 3 years ago, while driving to the airport, we heard a commentator on NPR say that it was a good time to refinance your home loan if you had an interest rate above 6%. When we got back home from our trip, we went about refinancing our house. It worked out pretty well. Our payment went down $250 a month and we lost 1.5% on the interest rate.
It looks like we’re about to refi again, but this time it’s even more impressive. One of our friends/neighbors is a mortgage broker, and he told me that he’s getting people ~3% interest rates on 15 year loans, and the result is that the payment doesn’t change much.
He ran the numbers for us yesterday: on a 15 year loan, our payment only goes up $100 a month.