I’m shooting for 2.9-3.1% in the coming months. 30 yr fixed, 20% down.
How much Loan amount you’re looking at? Depending on the anount that minimum rate difference won’t be much ober 30 years if you have a property lined up.
Hehe listen thank you. Had not heard of them so its an option. Will look at all options for sure and get 1000 less and 2500 credit might work out well.
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I bought my house 4 years ago and got my rate at 3.625. I’m going to keep an eye on it as well. Not sure how low it’s going to go but can’t hurt to keep an eye on it.
Nothing is forever bubba.
Its about a 10 year breakeven. Not worth it but a good suggestion to consider!
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Cash now > Cash 30 years from now…
Cash (in the bank) is king
P.s. - im waiting for banks are no good comments from someone
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I’m currently on a 30 yr @ 3.875 that I did in 2017. I’ve been looking to refi but haven’t seen anything with no closing costs that seems worth my while at this point.
If i could i would always put the least amount of downpayment, eat the PMI for few years and have cash in the pocket.
I know some people get mad that they have to pay interest but with current rates, this is the cheapest long-term loan you’ll ever get.
I was in a similar situation as you. Refied with a 3.25% with no out of pocket 2 weeks ago.
If youre not using a mortgage broker consider one. Find a good one who you can rely on. Ask them to give you updates on rates and that way you can minimize your daily search.
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Yep! I totally understand what you’re saying, especially with PMI being as cheap as it is.
For me, I’m putting enough down to get the balance of the note in a specific range in order to keep it at a certain type of mortgage.
Keep me honest though…once you hit the 20% equity, to get rid of the PMI, don’t you need to refi? Not just re-appraise?
This is a good point.
One common mistake people make when comparing options is looking at the savings from paying points up front along the entire amortization timeline (15, 20, 30 years).
The typical lifespan of a mortgage is somewhere around 9 years (people move, refi, pay off early… die).
While not a perfect analogy, this makes a mortgage more like interim financing with a balloon payment.
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You have multiple choices & mostly the conditions to remove PMI are pretty similar unless your contract states differently.
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Generally, If you pre-pay to get LTV of 80% or less based on initial mortgage application, PMI can be removed with simple request or automatically.
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If you’re relying on reappraisal within the 1st 4-5 years, LTV can will be 75% or so.
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And if you do nothing it goes away automatically on schedule.
That make sense?
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That means a lot coming from you since you’re so proficient in this area (I mean that sincerely-No sarcasm here).
I think people often get fixated on the number they want to hit because it sounds good/feels good.
Just the other day, I saved someone on LH $1500 (including my fee) compared to a deal he shared here. He pushed for an extra $9/off per month, in order for the number to round off and “sound better.” I repeat, this was already after I saved him $1500 including the broker fee.
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Good stuff, thank you!
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One of the reasons i do not like 15 year mortgages. Why convert liquid asset (cash) in non-liquid asset (real eastate) when you’re more likely to refi, move, or something in near term?
Curious if you guys look at the overall interest for the life of the loan or just monthly payment? (maybe already considering you’ll most likely refi in a number of years).
I ask bc I was looking at rates to see if it was worth it for me but since mortgages are interest heavy during the beginning of the loan it would cost so much more overall. The over $500 monthly I was “saving” was costing me more on the back end.
At least for me, and I am by no means an expert-
I am buying right now and not refinancing, so my situation is different.
But, if I was putting my refi hat on, I am looking at historical interest rates, and seeing that these are the lowest maybe ever?
So, I wouldn’t plan to refinance in 5 years knowing where they are today.
Well at current low rates, refi in few years is not that likely.
What do you mean? I don’t understand.
This could be a YMMV but amortization has me paying an additional 10k overall in interest if I refi’d but my payment would be over $500 less since my balance is much lower now. I only have 8yrs left on my mortgage so at this point most of my monthly goes towards principal
@myles21 How many years is the refi for, though?
Is it a 10 year note to save you $500?
Could you do a super low interest, 5/1 ARM, and have the 8 years paid off in 5?
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