Friday, 4 January 2013

The Mortgage Vacuum

Each month, my mortgage takes a sizable part of my income. I doubt that's unique, but wish that the interest wasn't so large. They say it can take at least 5 years of mortgage payments to pay off the interest, something I find more than a little discouraging.

Am I alone? Speaking with some girlfriends over lunch this week, we were all feeling the pinch. Between bills, putting away for retirement, investments, annuities, and similar, the proverbial cookie jar was low on stock. Being a sing 30 something working professional, I bought a condo about 2 years ago as an investment for the future. I figured you (mostly) can't go wrong with real estate.

Sometimes I still question owning versus renting. I've seen several arguments for either, and both sides make a compelling case. Lately I've been thinking of refinancing my mortgage as I think I can get locked in at a much better rate than I currently hold. When I first started to consider this, one question that stood out was when is the best time to refinance? It turns out that knowing your banks fiscal year end is key to getting the best terms so they can finish the year strong.

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