Graphic Art

I shared in a couple of posts about the process of refinancing our mortgage.  We now pay a lower interest rate, the length of our loan has decreased, and our monthly payment is only $12 more.  Good stuff!

When we closed on our new loan, the agent shared that we would be receiving a check for $1000 and some odd dollars as a refund.  Apparently banks overestimate the closing costs on a loan to make sure that they cover any possible scenario.  She also said that our first payment on this loan would not be due until February.

The temptation was certainly there to spend the money.  We momentarily discussed home improvements, talked about how technically they would be an investment since we'd be adding value to our home.  But in no time at all, our practical natures overrode any further attempts of rationalizing.  We came to the agreement that we would take the refund check plus our current monthly mortgage payment for January and use them to pay down the principal of our new loan.  Any payment that can be made towards the principal of a loan is a bonus because when you pay down the principal, you also automatically eliminate potential interest that would have to be paid.  Looking at the graph below (thanks to my techno-savvy husband), you can see that by putting this money towards the principal, we saved almost half a year in bank payments.

I cannot wait to post this graphic when God performs His miracle with our mortgage!