I’ve been busy lately getting an hourly rate of $1, 000 at a special job. Plus its non-taxable money, a real good deal.
You’re selling drugs?
You are doing tax evasion?
Well, what then???
I refinanced my mortgage.
Huh? $1000/hour? Doesn’t make sense.
I had a $620,000 house mortgage at 4.25% interest and also a line of credit of 95,000 $ to 6.25%. *
I did some mortgage shopping. I found a deal over 3 years at 2.875%.
Computing the savings in interest over 36 months, while factoring the closing costs ($1700) lead me to $20,000 in savings.
I could have saved even more, but I failed. I missed a phone call to lock my interest rate at 2.75% initially. That would have saved me another $2000. Think about it, that’s a $2000 phone call. The opportunity cost of many of our actions are incredible.
The family worked 20 hours for this refinancing:
- 10 hours of research, comparisons and communication with lenders.
- 5 hours to pretty up the house for the appraiser.
- 5 hours to complete official documents.
Total: 20 hours, $20,000; $1000/hour. Not bad. If you find something that pays more, let me know. 🙂
*: On the West Coast, Los Angeles, San Francisco, Seattle, Vancouver, the houses cost a fortune. They are not necessarily bigger. Location, location, location.