almost liquid again

When we bought our house a year and a half ago we managed to get a deal where we could get a mortgage for just over the value of the house. This meant that we could have our closing costs covered and keep our savings for home improvements and as an emergency fallback, which worked quite well. However because our mortgage was for more than 80% of the house’s value, it meant that we had to pay PMI – Private Mortgage Insurance. And while that article states that PMI can be up to $100 per month, we were somehow paying almost $200. Not a good deal, as this payment doesn’t really pay for anything – it doesn’t go towards the mortgage total, and unlike the mortgage interest it’s not tax deductible. So we have thought of it as just a fee for the privilege of being able to have the house.

A few weeks ago I started shopping around for a new mortgage – house prices have risen and rates have dropped, so it seemed like a good time. I used Lending Tree where I entered our requirements, which were sent to various lenders who could then vie for my business. Nice system. So far it seems to be going well, we’ve had lots of documentation to deal with but the guys we’ve been working with have been very helpful, and tell me that it should all be signed and sealed within the next couple of weeks. It seems that we’ll even be able to roll our car loan into the new financing, with the net result that we’ll be paying $tons less per month on these loans, meaning that we’ll be living within our means once again. Unless of course we go nuts with spending sprees because we’ll feel like we have loads of spare cash.

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