To Refinance or Not?

I will be the first to admit, that I have been a very irresponsible blogger this week. No post since Tuesday (and I actually wrote it Monday). Geez!

I have reasons though, and I think they are good ones! First, this week turned out to be insanely busy. We wrapped up Brownies and I went to my info night for rowing (that will be a rant for another day). I talked with my mortgage broker and met with a realtor, and I also went on a date (!! Pretty uneventful so not much to share even if this were THAT kind of blog)

I have spent a lot of time with my variable-rate-mortgage friends lately, and after hearing about their 3.25% rate for the umpteenth (I think that is a word that should only be said, not written), I was more than a little envious. My 5.76% rate doesn't look so hot, in comparison, so I called my broker this week to see what we could do about it. With prime below 2.5%, in some cases there is more merit in paying the penalty and getting the low rate.

Turns out, I am not one of these cases. Since I took a 5 year fixed rate, I am locked in for another 3 1/2 years (approximately), so I have not paid off enough of my mortgage (and therefore "own" enough) of it yet to justify the penalty. Also, since my rate is quite a bit higher than today's interest rates, the difference in lost interest to ING (yes, I have an "unmortgage") is pretty substantial. When it is all said and done, it would cost me $12,000 to payout my current mortgage. YIKES!

The good news I got this week? I don't have to upgrade my electrical right away!! This is something I have worried and thought about since I moved in. My neighbour and I got together with a realtor she knows one evening for a couple of drinks, and I asked him some questions about the value of upgrades, in terms of resale. I was also pleased to hear that the curb appeal of my house is great. Maybe it has become so familiar to me, I think it's blah? I am also going to hold off paving my driveway for now. It was extra exciting to hear that I can focus my energy (and finances) on finishing my basement and the little things inside my house!! Pink, striped office, here we come!

Have a safe and happy long weekend!