yay...a better interest rate

I have been calling around to see if anyone out there would be able to give us a better interest rate on the condo we still own. From what I am understanding, that loan carries a higher risk because it's not our primary residence. The condo has also lost value over the last 2 years and so the combination of the two does not qualify us to refinance. Our tenants (who we love by the way) will have been there 2.5 years next April. If you remember, we signed a 3 year contract with them. The plan is to put it on the market next April in hopes it will sell by the time their lease is up. If not, they have already expressed interest in renting from us for longer than the 3 years. We really have no idea if or when it will sell, so we figured we might as well see what we can do about a refinance. We are bummed that we can't take advantage of the low rates right now, but in calling about the condo, I ended up asking about the van loan and the mobile home loan....something I don't think I would have thought to call about otherwise.

We ended up refinancing the van loan. We had to shorten the term of the loan (which is fine because we plan to pay if off in this next year anyway) and increased our payments by about $100 but we were able to lower the interest rate to 4.1%. YAY!! Any little bit helps!

We were not able to go ahead with a refinance on the mobile home loan right now because apparently there are some new Federal laws that the bank needs to sort through before they can go forward with any mobile home loans of any kind. They hope to have that taken care of in about a month. If that happens, it looks like we would be able to cut the interest on that loan as well.

Dave Ramsey is not a fan of the whole credit score thing because inorder to have a high one, you need to have a history of borrowing money. However, because we are making such big payments and have paid so much off, our credit scores went from really good to excellent. That and having less overall debt is why we were able to get better rates now.
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