Thinking about refinancing my 5.0%/30yr to a 3.0%/15yr. My question is: should I lock now at 3% or do you think they will go down more?
I'm in the process of a refi, doing a 3%/10yr.
I've been asking myself the same question, will they go down more? Obviously they can't go down much more but they certainly could go down. And eventually, they will go up. To take the emotion out of missing the best deal, I rationalize it. I look at it this way, I'm saving a tremendous amount of interest in the long term and I don't expect this type of deal to be around for along time. I had a 5.75%/30yr. I essentially have the same payment per month (a little higher with the refi) but I'm saving 10's of thousands of dollars in interest expense.
What bank is giving you 3%? Looking to buy a house shortly, wondering who has the best rates.
Iowa Bankers via my hometown bank. I think a lot of smaller banks write loans through them. Keep in mind, rate will be different for longer terms.
I looked in to ARM but they aren't as competitive for what I'm trying to do. I also have a decent amount of equity in my home already so this was the best option. It will most likely be different for someone buying their first home (my assumption), depending on how much you plan to put down.
ING is a big bank that usually has very competitive rates. I went with the local bank because it was a lot easier for my situation.
Going from a 30 to a 15 is the most important thing here. You are going to love it when you immediately start chopping at principle payment #1. Rates may go down, but run some figures, it doesn't make the payment go down enough to hurt.
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