On the ARM is there a restriction on

how often they could bump it or the percentage points they are allowed to increase? What would the costs be for the re-fi, were you going to be able to pay those costs up-front or fold it into the loan? Think when I started on this house it was something like 8.25 or 8.75, did refinance it but never got to the low, low rates that have been available, 6 was about the best I ever had. Paid for now and Jan is right, makes a major difference when you retire if you don’t have that payment.

My interest rate with the fixed 15-year would be 4%

On a 30 year it would be almost 5%. So that’s another thing to think about. The benefit with Churchill that I might not get with others is they wouldn’t need to do an appraisal. Since I’m borderline underwater, the lack of an appraisal is a good thing. Although I think she mentioned it was through the HARP program, which might be available through another lender as well…

I will tell you what we have done

We did a 30 fixed when we moved to our town about 14 years ago but ALWAYS paid extra, about 10% of the whole payment (principle, interest, escrow) got added every month. We treated that increased amount as our house payment. We refi-ed a couple of years in because interest rates had dropped so much and got a 15 year fixed for about the same amount as the original 30 year fixed. We continued paying extra, same format, as before.

When we bought our current home in Sept. of 2011 we went with a 15 year fixed. We pay extra on this in the same manner.

All this paying extra was already in place long before we started DR. We are in a different place than you. Find out what is available. Check rates other places. When we bought in ‘11 our “home” bank where we had had a mortgage for 11 years could not TOUCH what we got at another bank where we have part of our FFEF. It pays to check around.

I switched from a 30 year to a 15 year in 2008

2023 still seems a long way off – hopefully the Farm and sheep will help me pay it off before then. In my case, my payment went up by $50 so I pay 750.00 but I got behind last year with my divorce shenanigans so I have to pay an additional $312 until August 1st. Its rough going, but I’ll get there. Then when I’ve paid off the CCs, I will use that money for the mortgage and hope to be able to make between 2 – 3 extra full payments a year. It IS nice to see the amount owed coming down nicely.

Possible refinance

I’m on an ARM with a current interest rate of 3%. I spoke to a lady from Churchill Mortgage yesterday and I can get a 15-year fixed at about $1070. My current payment is $805. So that’s a big jump, comparatively. My other alternative would be to get a 30-year with a payment of about $740. The lady said that if I got the 30-year, I could always pay more. But I know the tendency is NOT to do that, so I’m leaning towards stretching to make the 15-year payment. Opinions, suggestions?

I used TaxAct online last year and I’m going with it again this year

It’s as good as TurboTax and the basic version is free (this includes the ability to file electronically). The premium version is $13. I paid for it this year because it will pull last year’s data into this year’s filing. I don’t know anything about filing state income taxes because we don’t have that in Texas.

Last year I used the two side-by-side and they came up with the same answers, but I found TaxAct to be slightly less tedious to use.
TurboTax online is free, but to file electronically with it costs money, so once I was convinced that TaxAct had done its job, I used it to do the filing and kissed TurboTax goodbye.

My one complaint is that it will import electronic W2’s from just one source, and that’s not what our employers use. So I had to type it all in (it’s not that much typing but I like to eliminate human error where I can).