Dave and Katy’s Travels | An Investment, retirement, and travel blog

Katy and I are on vacation right now, and I noticed on a TV today in a restaurant that the fed dropped the rates 50 basis points (rather than the 25 expected). Theoretically rates should drop around .5%, so perhaps instead of the current 6.25% I could potentially get, reasonable rates may drop to 5.75%. As our current rate is 6.5%, we’re getting towards the point we would want to refinance.

However, I know that refinancing timing is also determined by how long you plan on staying in a home. We’ve continued to think about moving again before our retirement. We have pretty much decided that we don’t want to stay in this home for the next 10 years, so we’ll need to move at least once more. The only question is the timing of when we would move.

I personally think I’d like to move sooner rather than later. We’re spending a lot on this house currently, and I think it’d bode well for our long term financial future to cut out our costs asap. If we can manage to stay in the next home for 10 years, we could also put a pretty large dent in a mortgage. That extra money would be appreciated when we have retirement costs. As things are, between closing costs and realtor costs, we’ll be lucky to walk away without losing much.

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