I remember when we refinanced our mortgage back in 2002. Rates were at "historic lows" and I clearly recall being told that "it will never get any better than this."
That rock-bottom rate was 5.85% on a 30-year-fixed loan.
Fast forward to today when that rate sounds astronomical. I cringe every time I hear some financial guru say that if you haven't refinanced by now, you're crazy. I cringe not because I'm crazy, but because I'm broke.
It seems illogical to me, but we can't refinance. I've tried. Too much debt, I'm told. Duh. I've talked through our situation with the refinancing department of Wells Fargo, who holds our current mortgage. I've pointed out that we have never been behind on our mortgage, that we have more than $100,000 in equity in our home - about half its value - and have been in this home for 17 years. And I've pointed out that we'd be better able to handle our bills if we had that little bit of breathing room a lower payment would afford. They didn't buy it.
I tell myself that our interest rate really is incredible when compared to years past. It's just that it could be better. A lot better.
Debt really messes things up, you know?