My bank account has been creeping up over the last several months. I'm finding out that it is cheaper for 2 to live than one. Since Kitty moved in a couple of years ago we have been sharing the expenses. I pay the mortgage and she gets the utilities. This has an added benefit in that we don't fight over money issues. I don't yell at her if she takes a long hot shower because she's paying for the gas and water. If I do yell at her it's because I believe in water conservation.
So I looked at my bank account and decided that earning interest in a checking account was not doing me any good. I could invest more in the stock market, but these are very uncertain times. Besides, I already have a nice chunk in the market. I don't have any debt except for my mortgage. Hmmmmm. Maybe I could save some money there! So I looked into re-financing. Right now I could save 1% if I refinanced. That's not a lot, but if I paid down some of the principal and shortened the loan life with the lower interest rate, I'd save some serious bucks in about 10 years. So that's what I did. I'll use up a good chunk of my savings, which is earning less than 3%, to pay down the loan. Instead of owning my house in 2029, I'll own it in 2017. It will cost me an extra $100/mo which should be no big heartache. Especially when I see that I will be saving approximately $60,000 in interest!