Paperwork is processing for my 12,000 loan (9.9% interest - ugh. Will have to pay that off ASAP.)

Called three banks about refinancing. I think I am going to stick with PNC. If the appraisal comes out like it did before, I'll have to bring 11,900 with me to closing since there isn't enough equity in my home (this also includes the closing costs). But I'll end up with a 15-year, 4.5% loan! T and I are planning on making extra payments to make it a 12-year loan so the house will be paid in full by the time he's 40!

Woohoo!!

So if you've read my previous posts, you've seen how bothered I am by our horrible interest rate on our mortgage. Currently have 22 years left of the 25 year, 7.24% mortgage. After our appraisal a few months ago it was determined we'd need to bring 15-20k with us to closing to refinance since we didn't have enough equity in our home. We didn't have the cash at that time so we dropped it.

Fast forward to now. I called my credit union and talked about a few personal loans with them. Since my husbands credit score was borderline for the loan previously, I figured we cannot take out a loan in his name. So I applied for a 15,000 personal loan in my name and was approved! My credit score was around 770 the last time I checked, so even if it takes a large hit, it should be high enough for us to qualify for the FHA loan refinance. We were looking to get a 15-year loan for 5% or lower (I need to look into what rates are currently at.) If we got it at 5%, it looks like a 15-year loan would actually be roughly $30 LESS a month then what we're paying now!! I would refinance for a shorter term but with babies on the brain I'd like us to have more wiggle room. The bad news is the personal loan is 9.9% (fixed) which is very high. I figure if we're as disciplied as we've been with paying off debt the past 2 years then we can have this paid off in approximately 18 months. When we get the loan down to a more reasonable amount, we might ask T's parents for a no-interest loan and pay it off.