How I Saved $163,923.69

Dated: May 7 2020

Views: 13


Let me start off by saying I make no money off of my blogs as of this writing.  Therefore, what’s said next could help you.  It helped me. It helped my twin. (Yes, there are two of us.)

I have purchased five total homes since 2001.  I have sold four of those and acquired number five in 2017 with a loan amount of $305,100 amortized for 30 years.

This is the first home I have purchased since the Great Recession.  And it felt different. I had now been in the industry for over a decade and understood the market.  I was also in my forties. Taking out a 30-year mortgage in your forties means you’re paying it off in your seventies.  

Does that sound appealing?  It’s not.  

So, I decided to take action and began looking into methods of reducing the amount of time I would have to pay back the loan.  

The good news is that mortgage rates change all the time.  By the end of 2017, they were lower than when I purchased, and the value of the home increased, adding additional equity.  This helped to bring the interest rate even lower.

I was curious to find out how much extra per month would actually help pay it off significantly sooner.  And would refinancing make a difference?  

Here’s what I found:

When you finance a house for 15 or 20 years, you typically obtain a lower rate.  So in my case, refinancing from a 4.5% interest rate for 30 years, down to a 3.365% interest rate for 15 years would save me $163,923.69 in interest over the life of the loan.  


“Oh wait, Amy”, some of you say.  “You’re never going to stay in that house for 30 years.”

You’re right, I may not!  Though, did you know the National Association’s latest statistics are showing the average time a person stays in a home is now 11 years?

So going back to my loan amount of $305,100, I decided to create a chart to help me make a decision.  

$305,100  – 30 Year Fixed at 4.5% verses 15 Year Fixed at 3.365%

30 yr fixed – 4.5%



15 yr fixed – 3.365%



$1545.90/mo (PI)


$2181.11/mo  (PI)


Month 1



Month 1



Year 11, Month 12



Year 11, Month 12



11 Years Total Paid



11 Years Total Paid



Total Interest Paid





Now if you’re not interested in increasing to such a large monthly payment in exchange for a quicker payoff date, then here is an option my twin just took based on her situation.

$275,000 – 30 Year Fixed at 4.5% verses 30 Year Fixed at 3.5%

30 yr fixed – 4.5%



30 yr fixed – 3.5%



$1393.38/mo (PI)


$1234.97.38/mo (PI)


Month 1



Month 1



Year 11, Month 12



Year 11, Month 12



11 Years Total Paid



11 Years Total Paid



Total Interest Paid





As you can see the savings in interest can be substantial.  Even if both my twin and I decided to move in 11 years, I would have saved a total of $55,230.05, and she would have saved $28,180.09.  How does that sound?

Some of you may have purchased a home in Q42018 or early Q12019.  For those of you with a 4.5% or higher interest rate, it may be a good time to consider a refinance.  However, please call us first, because it will depend on where you’re at and what your goals are. We don’t want you to spend any unnecessary money!

Remember, interest rates are at a 5-year low.  This means today you can buy more house for the same money compared to a year ago (in Central Florida).  It could also mean you buy what you want for less. For those of you thinking of buying, this is one of the best times for two reasons.  

  1. The low-interest rates.  

  2. The market slows down in the fall, and buyers may be able to find a better deal as there isn’t as much competition.

In the end, my goal is to help put more money in your pocket.  So before making any impulsive decisions, please feel free to reach out.  We’re happy to help and always look forward to the opportunity.

As always, have an incredible week!

~ Amy, Unraveling Real Estate Obscurities

 KeyBella Homes at eXp Realty

Visit us at

Call us at 407-445-7013

Remember, when your friends or family members are thinking of selling or buying a home, we’d be honored to help and will take amazing care of them.

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Amy Moline

Real Estate team that has helped close over 1700 homes since 2005. Exceeding Expectations is Our Standard!....

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