I知 working towards RE at the end of this year. My income/expenditure calculations reveal that I知 just about where I need to be regarding income to cover expected expenses for many years, however I知 a little nervous as to whether or not I値l have enough (or if I made a big spreadsheet mistake) during the time-frame that I have calculated (to 2023, as our expenses drop considerably after that, but income shows slight increase each year). Sound familiar?
So, just to be sure and instead of OMY (One More Year) I was contemplating refinancing my mortgage to reduce my year to year expenses. I壇 like to hear some of your thoughts on this.
Presently, I am almost 2 years into a 15 year mortgage at 2.85%. I owe $175,000 (house value of approx. $300,000) and all told my monthly payment is right at $2,100 (I round up a few dollars on my payment). If I refinance to 30 years the payment will drop to about $1,350. This extra $750/month would easily cover any gaps or underestimations that I might have made.
I thought that I could take a wait and see attitude and refinance next year if need be, but I知 thinking that an increase in the rates might be a deterrent. Also, I have not gotten a list of the fees associated with the refinance yet, and those could dissuade me as well. Lastly, getting started this year would help me to build more of a stache.
Your thoughts?