Bad news gives us good low-interest rates. The lowest in 30 years! So what do we do? Grab the free money, replace old debt with new debt so that we have 1 low payment in retirement!

I got a call from longtime clients that I hadn’t spoken to in 6 years. They had refi’s in 2013 and had a pretty good rate at 4.75% but they also had a second mortgage from a bill consolidation loan 3 years ago. Their kids are all out of college except 1 who is 3 years away. They are finally looking at their next chapter in life – retirement.

They had a first mortgage payment with their taxes included of $3400 and a second mortgage of $975 per month. Combining both their new payment is $3450.

Now that’s a lot of savings!

$925 in savings x 12 months is 11,100 per year savings for an investment of $3500 for closing costs. Wow – do you think you could go tot eh bank deposit $3500 in a CD and get $11,100 back every year. I wish 😉 that’s a 317% return!

They dropped their interest rate 1% so much more of their payment goes to principal.

If you know of anyone who has an interest rate above 4.5% tell them to call me for a free quote and analysis on whether it makes sense for them to refinance (because sometimes it doesn’t).

They will thank you for it!