How low can we go? 30 yr fixed at 3.75% with no fees...
- Thread starter ps99472
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The point is to play less interest than the prevailing 30-year rate to give you more flexibility with available cash to either pay down the principal more, invest, etc.
This also makes more sense if you're younger because the chances are you won't stay in your home 5, 10, 15 years... esp if there is a cemetery being built nearby.
The Motor Court Company
Well-known member
but if you can afford the higher payment, isn't it better than 5/1 ARM + 10 year payoff plan? total interest will be less and you lock in the interest rate for 15 years.
USCTrojanCPA said:
irvinehomeowner
Well-known member
It depends what the rate is at that time. If the 15-year is lower than whatever the ARM is adjusting at, you refi, if not, stay with the ARM until it does adjust... or if any time during the first stretch of 10-15 years, the 30-year fixed drops low enough, refi into that.eyephone said:
The point is to play less interest than the prevailing 30-year rate to give you more flexibility with available cash to either pay down the principal more, invest, etc.
This also makes more sense if you're younger because the chances are you won't stay in your home 5, 10, 15 years... esp if there is a cemetery being built nearby.
The Motor Court Company
Well-known member
for my case though, according to Zillow 15 year fixed is quoted 2.875, 5/1 ARM is 2.75; so it is a wash.
my wife staunchly opposes anything ARM; so only fixed rate loans for us
my wife staunchly opposes anything ARM; so only fixed rate loans for us
ps9 said:
sgip
Well-known member
I'll take a stab at answering PS9's question:
...Because there is a higher, long term value of peace of mind than the short term benefit of a few dollars saved on a monthly payment.
I've lead many people to consider ARM loans, but always tell them if they are going to walk the halls at night worrying what might happen - an ARM loan is absolutely the worst deal you could take.
Everyones risk tolerance thermometer tops out at some point. Those with lower thresholds make the right choice in staying with a 30 fixed.
...Because there is a higher, long term value of peace of mind than the short term benefit of a few dollars saved on a monthly payment.
I've lead many people to consider ARM loans, but always tell them if they are going to walk the halls at night worrying what might happen - an ARM loan is absolutely the worst deal you could take.
Everyones risk tolerance thermometer tops out at some point. Those with lower thresholds make the right choice in staying with a 30 fixed.
The Motor Court Company
Well-known member
she just wants that peace of mind as SGIP said. I tried but could not convince her. even though my income alone can qualify the loan and I usually apply solo, if she refuses to sign the final paper for trust deed and others at closing, there is not much I can do.
Plus I ran the scenarios for her. It is very likely we will keep the house long term. we have enough funds to buy a 2nd home with similar or lower price shall we move. So our current primary residence will become a rental/investment.
If we move to a place where housing cost is much higher than Irvine, I would rather rent there because for such place there is surely not going to be rental parity.
Plus I ran the scenarios for her. It is very likely we will keep the house long term. we have enough funds to buy a 2nd home with similar or lower price shall we move. So our current primary residence will become a rental/investment.
If we move to a place where housing cost is much higher than Irvine, I would rather rent there because for such place there is surely not going to be rental parity.
ps9 said:
The Motor Court Company
Well-known member
here you go. http://www.mortgagenewsdaily.com/mortgage_rates/mbs-basics.aspx
Irvinecommuter said:Holy cow...10 year yields hit 1.664 (sits at 1.68 as I type this)We are getting to 2012 levels.
MBS seems like they are following according. Can someone educated me on what the various MBS products are? I know there is Fannie Mae, Ginnie Mae, FHA...but are the 3.0, 3.5, etc.?
The Motor Court Company
Well-known member
here we go again. The Euro roller coaster ride is far from over.
ECB is refusing to take Greek bonds as collateral for the loans.
http://www.reuters.com/article/2015/02/04/us-markets-global-idUSKBN0L72O820150204
ECB is refusing to take Greek bonds as collateral for the loans.
http://www.reuters.com/article/2015/02/04/us-markets-global-idUSKBN0L72O820150204
sgip
Well-known member
I encourage my customers to refi their new 30 fixed as a 29 or 23 year (AKA "same payoff") term loans. Refinancing a 28 year loan into a new 30 may be the right decision for some, but it will always cost more in the long run unless you decide to prepay agressively. Example of a "same payoff" refi:
$100k loan at 4.0% has a payment of $477.42. In 1 year the balance will be $98,238
$98,238 at 3.875% for 29 years has a payment of $470.42 $7.00 doesn't see like much, however if you have a $500k loan, that's now $35...ish. If the rate is .25% less, not .125% in the example, or an older loan it still makes sense to look into a refi.
There are advisors who say "Don't refinance unless the new rate is .50% less". If you have no expense associated with the refi and the same payoff date, any refi can be a smart move.
$100k loan at 4.0% has a payment of $477.42. In 1 year the balance will be $98,238
$98,238 at 3.875% for 29 years has a payment of $470.42 $7.00 doesn't see like much, however if you have a $500k loan, that's now $35...ish. If the rate is .25% less, not .125% in the example, or an older loan it still makes sense to look into a refi.
There are advisors who say "Don't refinance unless the new rate is .50% less". If you have no expense associated with the refi and the same payoff date, any refi can be a smart move.
Ready2Downsize
Well-known member
But they are paying the same amount of money (so I'm assuming it's more than the minimum payment for the new loan) and the extra will all go to principle.
The Motor Court Company
Well-known member
job report better than expected, MBS and US10Y prices tanking. it looks like the rates will at least be up in the short term
US10Y from 1.8 to 1.96 in a day. Wow. if you have not locked, you may be out of luck
US10Y from 1.8 to 1.96 in a day. Wow. if you have not locked, you may be out of luck
The Motor Court Company
Well-known member
I am rooting for our fellow Greeks to liberate themselves by breaking free from the Euro. That will make vacation in Europe cheaper and may help lower US mortgage rates.
Go Greeks! be the champion of democracy again!
Go Greeks! be the champion of democracy again!
The Motor Court Company
Well-known member
tanks on the streets?
http://www.independent.co.uk/news/b...alexis-tsipras-or-angela-merkel-10035132.html
An unfolding tragedy? Greece?s diary
Wednesday 11 February
Emergency meeting of eurozone finance ministers, (known as the eurogroup). Greece also loses access to cheapest funding from the European Central Bank.
Thursday 12 February
European leaders meet in Brussels. Alexis Tsipras?s first meeting with all fellow European prime ministers.
Monday 16 February
Deadline to reapply for bailout according to eurogroup head, Jeroen Dijsselbloem.
Wednesday 18 February
European Central Bank governing council meeting to renew emergency funding.
Saturday 28 February
Greece due to receive final ?7.2bn instalment from Troika. Without a deal by this date, Greece could lose access to ECB funding.
http://www.independent.co.uk/news/b...alexis-tsipras-or-angela-merkel-10035132.html
An unfolding tragedy? Greece?s diary
Wednesday 11 February
Emergency meeting of eurozone finance ministers, (known as the eurogroup). Greece also loses access to cheapest funding from the European Central Bank.
Thursday 12 February
European leaders meet in Brussels. Alexis Tsipras?s first meeting with all fellow European prime ministers.
Monday 16 February
Deadline to reapply for bailout according to eurogroup head, Jeroen Dijsselbloem.
Wednesday 18 February
European Central Bank governing council meeting to renew emergency funding.
Saturday 28 February
Greece due to receive final ?7.2bn instalment from Troika. Without a deal by this date, Greece could lose access to ECB funding.