Smarty Pants Dance!

Well, I can't resist doing a little Smarty Pants Dance today. Although I've been with my current mortgage holder (rhymes with Shuntington) for 20+ years without so much as a single late payment, they wanted almost $4,000 in closing costs to refinance. The snafu over the lot number gave me a little time to do some research -- yes, I should have done it sooner!

I learned that the bank (5/3) where I have my little Home Equity Line of Credit would offer me the whole package -- paying off my first mortgage plus borrowing the money to do some home improvement -- for ZERO closing costs. Nada, zip, zilch. AND they are offering me prime plus .75% for a current rate of 4%! I can lock into a fixed rate at any time but I can't see any reason to do so. AND because I will borrow the extra funds as I need them, I will actually pay down the principal much faster. I keep trying to find the catch, the hitch, but there isn't one.

I'm feeling like a clever little monkey. Takes the sting out of some of my recent bonehead moves. Viva La Villa!
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P.S. As of March 31, 2009, nearly 22% of all U.S. Homeowners owed more on their mortgages than their property was worth. (Source: Zillow.com) Even when I borrow the full amount needed for my projects, my debt will be about 1/3 of the home's assessed value.