Build Your Own Arcade Controls Forum
Main => Everything Else => Topic started by: ChadTower on December 18, 2008, 11:04:08 am
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Anyone else looking at this week's rate drops thinking it might be a good idea to look into a refi? I'm seeing talk of fixed rates in the 4.75 range right now.
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Anyone else looking at this week's rate drops thinking it might be a good idea to look into a refi? I'm seeing talk of fixed rates in the 4.75 range right now.
If it gets to a point where fixed rates are sub 5%, it would then behoove me to refinance and tack on my 2nd. My first is currently at 6.125% with my second at prime - .5% (I think it was 4.25% last month). I am not a fan of the adjustable rate mortgage, but for the small size of the 2nd (less than 19K) it was a wise choice since my focus is to pay that off quickly....but if fixed rates get to a point where it's close...damn...I am all over that.
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Fixed rates are well below 5% today. Even my tiny local banks, that are usually higher than big banks, are posting 4.75.
I'm sitting at 5.875 and if I've run it right I'll save about 115/month going to 4.75. Assuming that's all interest I could add that 115 to principal and be paid off 6 years early without a change in today's required payment. Since I already send in an extra 50/month, 165 extra gets me paid off 8 years early without changing what I actually send in now.
Hrm.
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Ran into this today...
http://www.mymoneyblog.com/archives/2008/12/good-time-to-ask-about-refinancing-your-mortgage-i-might-save-50000.html
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I think my mortgage rate is pretty low, but I may have to look into this as well. Can splain to me "points" easily?
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http://www.bankrate.com/brm/Calsystem2/Calculators/InterestVsPoints/Default.aspx
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http://www.bankrate.com/brm/Calsystem2/Calculators/InterestVsPoints/Default.aspx
Ahh, now that makes sense. For some reason trying to listen to someone explain it to you just never clicked with me.
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Just wait for them to cut rates even more. It will be like -1% soon, where they give YOU money.
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The fed rate does not affect mortgage rates, look closer @ the 10-year T-bill fluctuations to forecast fixed rates. I am pretty sure its (fed) at like 0.250% as of a few days ago.
HELOC "Prime rate" based 2nds are hot right now for sure I bet (congrats to frizzle), prime hasn't been this low in like 5 years I think.
ARMS are based on the LIBOR.
So Prime, t-bill & LIBOR are what to look for rather than the fed rate.
Anyway yeah I think next week will be a good time to shop lock & close.
But what do I know?