Things had been moving rather slowly on our refinancing project, but move they did. On November 26 we signed our closing papers and went happily on our way, knowing that we were protected from going to a variable rate two years from now. The rate wasn't great (6.375%), but it was lower than our original rate. And we were happy just to know that we had a fixed rate.
And then, the day after Thanksgiving, something made me look at the bank's mortgage rates on the website. As of the 19th, the rate had dropped to 6.25%. And we had signed a rate lock-in to allow us to get a lower rate if it should present itself. It had, and the bank had screwed us. The bank was closed, but I planned to call first thing Monday morning and take advantage of the 3-day-cancel-with-no-repercussions paper we had signed.
Monday morning came. and I checked the website yet again. As of the 26th, the rate was now 5.75%! I called, the bank manager kissed my ass a little, and we went in the following day to cancel our loan. As we were sittining his office having the new paperwork drawn up, he received a message saying that the rates had dropped again. We were now down to 5.625%.
Over the life of the loan, that saves us $54,551 in interest...!
All I can say is that it pays to do your homework. The only one looking out for you is you, so make sure you do a good job of it! Had I not checked the rates on the website, I never would have known they had dropped so much. I was tempted not to do business with them again, but since they made it right, I guess we'll just stick with them. We're going to save another $30-60K anyways, depending on how early we pay off our mortgage. Amazing how it all adds up!