The current economic environment may seem daunting to some and understandably so. But, currently, there is an opportunity to save hundreds per month and thousands per year by simply refinancing your home mortgage. Recently I was able to take my mortgage from a horrendous 7.125% all the way down to 3.25% apr. This move literally saved me $430 per month or $5160 per year. I was able to close on this refinancing during the uncertain early days of the COVID pandemic.
Not only is the monthly payment much lower, but the total interest over 30 years was chopped in half saving me well over $100,000 in interest payments. Which brings about my point. I was almost too focused on events transpiring in the world and I was overlooking a golden opportunity that essentially gives myself a $5,100 a year raise. Doing so only required about 45 minutes in paperwork and another hour or so in the appraisal and closing process.
This is an excellent way to use leverage to your advantage and avoid needlessly giving your hard-earned money away in the form of interest payments. The extra wiggle room in your monthly budget could also allow you to feel less stressed by one less thing in this chaotic world. And it is by no means too late to refinance your mortgage. As of today, the current rate for a 30 year fixed mortgage can be as low as 3.06% on average. That last time mortgage rates were this low was back in 2012. But the difference between now and 2012 is that given the current environment, it is feasible that rates could continue to trend even lower than they are currently.