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Okay. Just refinanced at 3.5%. Let me say that again. 3.5%. I think I'll say it a few more times. 3.5%. Whoohoo. 3.5%.
Yet, I just had a conversation about this with an employee of my client who is paying 7.5% and has been since 1999. She and her husband are two college-educated, smart people and yet they have not bothered to refinance their home despite these historically low rates.
So I asked her a few questions such as her mortgage, her terms, etc., and input that into an amortization table. Heck, if they financed on a 15-year note, they'd pay it off faster with than their current 30-year note and still save $200 bucks a month. She couldn't believe it.
I guess I just took this kind of financial literacy for granted. What about you guys?
I bought a place a few months back, 30 year fixed at 4.0. I put less then 20% down, I was content. I was home shopping back in 2005ish and remember being happy about 7.9% rates. How times have changed.
I bought a place a few months back, 30 year fixed at 4.0. I put less then 20% down, I was content. I was home shopping back in 2005ish and remember being happy about 7.9% rates. How times have changed.
No kidding.
The coolest thing is that our mortgage was with Wells Fargo before. So we call Wells Fargo up and said, we want a lower interest rate. They looked at our credit history and said, "How 'bout 3.5%?" And rather than having a closing and all that other stuff, they just send us the paperwork to sign. We've done this once before and ran it past our attorney who pronounced it copacetic.
I guess what I'm saying is that I'm stunned more people aren't taking advantage of these rates, which will never be this low again in our lifetimes. If you manage to squeeze your rates a point or two or three lower, you are literally putting hundreds of dollars back in your pocket every month. Why wouldn't people do this?
Okay. Just refinanced at 3.5%. Let me say that again. 3.5%. I think I'll say it a few more times. 3.5%. Whoohoo. 3.5%.
Yet, I just had a conversation about this with an employee of my client who is paying 7.5% and has been since 1999. She and her husband are two college-educated, smart people and yet they have not bothered to refinance their home despite these historically low rates.
So I asked her a few questions such as her mortgage, her terms, etc., and input that into an amortization table. Heck, if they financed on a 15-year note, they'd pay it off faster with than their current 30-year note and still save $200 bucks a month. She couldn't believe it.
I guess I just took this kind of financial literacy for granted. What about you guys?
I find that kind of surprising and I'm pretty much a financial first-grader. Since I had to live paycheck to paycheck for most of my life, I was unable to purchase a place of my own until I was in my fifties and took advantage of the tax credit in 2010 with an FHA loan.
Now after two years at 5.25%, I went back to my mortgage guy to see if I could refinance, but he advised against it. Apparently the PMI gets doubled if you refinance any FHA loan taken after 2009, so any advantage I would gain by a lower interest rate would be wiped out by the higher PMI. He said that they may in the future move that up to loans taken after 2010, in which case I will be eligible. But, hey, I tried! And I DID do a successful tax appeal last year that saved me a few hundred a year.
Bought home at 4.8% on a 30 year in 2010.
Just did our refi - 2.8%.
Which means we have the same payment, but now it's 15 years.
And we were prepaying a grand a month...now we can skip that and STILL save even more money.
I told my buddy - he got 2.7% on a 10 year. $600 origination fee.
I am telling EVERYONE to refi.
I was thinking of just paying off my house, but hell...no point now.
Bought home at 4.8% on a 30 year in 2010.
Just did our refi - 2.8%.
Which means we have the same payment, but now it's 15 years.
And we were prepaying a grand a month...now we can skip that and STILL save even more money.
I told my buddy - he got 2.7% on a 10 year. $600 origination fee.
I am telling EVERYONE to refi.
I was thinking of just paying off my house, but hell...no point now.
2.8%. Wow. I'm feeling ripped off now. Self-employment sucks. If I worked for someone, it would have been lower.
We'll be getting a mortgage in the next 3-4 months and based on the fed moves yesterday, are expecting rates to go even lower before we lock into anything. I'm hoping we can get a 30 year fixed around 3%.
We're sitting on our 4.8% 15year note from 2003. Given where we are on the amortization table at this point, it would take about a 1% rate for a refi to make sense for us.
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