I feel like there are always personal finance topics coming up - post about them here.
To start, I’m looking at refinancing my current mortgage, and there are a couple of things that are interesting to me. I’m about 8 years into a 5/1 ARM, and the current rate is 5.125%. I’m looking to accomplish 2 things:
Get a lower rate.
Pull out some cash in order to renovate our master bathroom. (This could be a thread on its own.)
I contacted the mortgage broker that we used for our existing mortgage, and it looks like I can get a 30-year fixed at 3.75%. That’s absolutely insane to me, and I’m likely to do it just for the rate benefit. Even in a world where I don’t get to deduct my mortgage interest, I’m pretty happy to borrow money at 3.75%.
The other thing that was super interesting to me is that when the mortage broker was looking at my records, he was like, “Hey spidercrab. It looks like you transferred your house’s title to a trust since you took out the mortgage. [True, when we did our estate documents 5-6 years ago.] Technically, transferring ownership of title generally makes the mortgage note immediately due. In practice, this rarely happens, but it’s something to look out for, and will make the refinance a little more complicated.”
So it was a combination of funny/scary that setting up this trust might have generated a really big surprise bill. Now, I’m a little skeptical that it would have happened in our case, since we used an attorney specializing in estate planning, and he was the one who created the trust and transferred the property. But it’s a reminder of how easy it can be to make decisions with enormous financial consequences when you don’t have any real knowledge of the situation.