Had planned to spend tonight watching HGTV and dealing with stuff around the house.  Instead, I wound up dealing with money stuff.  Countrywide (my mortgage company) called with a refinance deal and I decided to do it.  Hopefully I made the right decision.

The interest rate is better than what I’ve been paying and is fixed rather than variable (which my HELOC was), but it’s an interest only loan for 10 years.  Doubt that I’ll have it that long as I’ll probably refinance before then.  If I do keep the loan, however, it goes to variable for the last 20 years.  Well, not exactly variable as the rate can be increased once per year for the final 20 years with a maximum of 5% over that period.

This will give me the option of paying towards the principal if I want, but also gives me the ability to put more $$$ into my 403B as well as putting some into a savings account or CD.  I think this will be a good thing in the long run.  Will re-evaluate in a few years…or when interest rates drop.  Have never had an interest only loan before, but the fact that I can pay towards the principal if I want makes me feel a bit better about doing it this way.

I feel pretty good about my finances in general right now.  Don’t know how this happened, but for the first time in years I actually have money for Christmas without putting anything on credit cards!  Amazing.