New financial goals

My mortage company approached me with an offer to refinance my mortgage.   The interest rate was more than 1% lower and they were not requiring PMI although I no longer had 20% equity in the house.  It was a good deal.  I refinanced back to a 30 year mortgage to drop my mortgage payment almost 250$.   In hard times, this will be a good thing.   My mortgage payment is being skipped this month so I will be putting that money into my emergency fund.   That means that my emergency fund is now complete at 6 months.

It also means that my goal to pay off my mortage by 62 is a little further away.  I now need to chop 12 years from my mortgage instead of 7.  Depressing isn’t it?  The good news is that my extra payment is actually larger (since my principal + interest is smaller) and each extra payment will kill 5 to 6 months in the beginning.

I think this new mortgage is a good thing and will help me out financially in the long run.


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