Anyone else going to refi their house?

[D2bets]

Paid it off in ten years, 40 yr olds it was over. No More Payments !

But Good Luck if you go the long route.

Here's the thing. If the 15 yr and 30 yr are the same, let's say 5%, I'll take the 30 year and here's why.... I can always pay extra each month into the 30 year and pay it off earlier, in 15 years if I want. And I would pay extra in this low int rate environment. But, let's say in 5 years the inflation monster hits and we see 10% money market rates. Well then I'll gladly cut back to the minimum payment on the 5% loan and invest the difference earning me 10%. No brainer.

Now if I can get a better rate on 15 or 20 year then it's a tougher call. Always nice to carry a lower rate.

 

[NorthernStar]

Here's the thing. If the 15 yr and 30 yr are the same, let's say 5%, I'll take the 30 year and here's why.... I can always pay extra each month into the 30 year and pay it off earlier, in 15 years if I want. And I would pay extra in this low int rate environment. But, let's say in 5 years the inflation monster hits and we see 10% money market rates. Well then I'll gladly cut back to the minimum payment on the 5% loan and invest the difference earning me 10%. No brainer.

Now if I can get a better rate on 15 or 20 year then it's a tougher call. Always nice to carry a lower rate.

Here is how crazy the market is...I priced a loan on friday....715 credit score....20% down....interest rate on a 30 year fixed 5.5%. Same guy but putting 10%.....sounds like a riskier loan right....should require a higher interest rate.....wrong....rate was 5%. Go figure....wierd world....no break in rate for a 15 or 20 year. Take the 30 year....and your plan D2 makes sense and we will have high inflation coming it is just a matter of when.

 

[TheKinz]

another factor depends on if you plan on living in the same house for 30 years or even 2-5 to make up for the fees. When calculating your "savings" make sure to add in monthly fees (Points) for doing the re-fi

All I can say is that there is definitley huge re-fi coming..Our company is busier than crap and all within the last 4 weeks.

 

[mj23]

After the NFL card today you could see a few more Re-fi !!

 

[OccamsRazor]

Thank you for this post!!!!

This post will probably make me over $100,000 in savings over the next 20 years.

This is the biggest money making post ever in the history of the RX.

 

[D2bets]

So are people doing this yet? I want at least 4.75%, or better yet 4.625%, or better for 30 years. Anyone here work in lending in Illinois?

 

[Cusipz]

I locked at 4.875 no points on a refi.

I just don't see 4.5 or lower in the near future, even with the Fed buying MBS and Treasuries next year. Banks will just increase their margins rather than chase the rates down - they are getting so much business at any rate under 5, it's crazy. Had to wait on hold 1 hr. to lock in my rate.

Anything under 5 seems good to me.

 

[D2bets]

I locked at 4.875 no points on a refi.

I just don't see 4.5 or lower in the near future, even with the Fed buying MBS and Treasuries next year. Banks will just increase their margins rather than chase the rates down - they are getting so much business at any rate under 5, it's crazy. Had to wait on hold 1 hr. to lock in my rate.

Anything under 5 seems good to me.

Excuse my ignorance, but does no points mean no closing costs? I think I may be making some calls on this tomorrow to see what I can do.

 

[Cusipz]

No points meant no discount points - I didn't pay anything extra to get that 4.875 rate. I'm still paying normal closing costs of a few grand.

Definitely check with multiple sources including a couple mortgage brokers. Then you can compare a wide-range of rates and points combinations.

If you plan on being in the place a long time, paying points upfront to get a lower rate makes sense.