5.375% locked in 30 year mortgage!
Ohioguy
rehab loan mortgage house that is 30 years old. Last week I heard that
30 year mortgages had dropped to record lows, and then I thought I
remembered that during the closing process, if we were within a couple
of weeks of closing, we could request to "lock in" the rates.
Since the FHA rehab loan allows us to have only $100 down, and also
includes the insurance, it is a bit higher than other loans. We had
been quoted numbers between 6.3%, 6.4%, 6% over the past couple of
months. 5.37% is fantastic! This will end up saving us about $11k over
the life of the loan.
I think I'm going to have to take my wife out to a nice restaurant to
celebrate - McDonald's here we come! (kidding, kidding)
sf
You found one of the ups of a down market, congratulations!
--
I love cooking with wine.
Sometimes I even put it in the food.
James
> On Tue, 08 Dec 2009 13:02:02 -0500, Ohioguy <n...@none.net> wrote:
> > We are in the midst of closing on our new home, a HUD owned, FHA 203k
> >rehab loan mortgage house that is 30 years old. Last week I heard that
> >30 year mortgages had dropped to record lows, and then I thought I
> >remembered that during the closing process, if we were within a couple
> >of weeks of closing, we could request to "lock in" the rates.
>
> > Since the FHA rehab loan allows us to have only $100 down, and also
> >includes the insurance, it is a bit higher than other loans. We had
> >been quoted numbers between 6.3%, 6.4%, 6% over the past couple of
> >months. 5.37% is fantastic! This will end up saving us about $11k over
> >the life of the loan.
>
> > I think I'm going to have to take my wife out to a nice restaurant to
> >celebrate - McDonald's here we come! (kidding, kidding)
>
> You found one of the ups of a down market, congratulations!
I'm on a variable rate mortgage with generous pre-payment options, and
my current rate is around 2.25%. I have kept my payment the same as
when i signed, and the rate was 4.25. My mortgage is being paid down
rapidly. Sadly though, my 5 year term is coming to an end in a few
months. So I have to decide.
We have shorter terms here in Canada - your term and your amortization
period are not the same here. In general terms run 1- 5 years. (Some
offer 6 months, some as long as 7 years). It will be an interesting
calculation. Our central bank is trying to keep things low for the
next 6 months.
So I am personally benefiting from current interest rates.
James
h
"James" <jl...@idirect.com> wrote in message
news:7bb9e534-21f2-4cb8...@w19g2000pre.googlegroups.com...
>I'm on a variable rate mortgage with generous pre-payment options, and
>my current rate is around 2.25%. I have kept my payment the same as
>when i signed, and the rate was 4.25. My mortgage is being paid down
>rapidly. Sadly though, my 5 year term is coming to an end in a few
>months. So I have to decide.
I got my adjustable rate mortgage 25 years ago and it was 11% (good at the
time). It goes up or down once a year, no more than 1.5%. This year it's
4.50% and next year it will be 3.25%. A lot of people seem down on
adjustable rate mortgages, but unless the rules have changed (like no cap on
the % of change, maybe?) they're fantastic. My rate is always competitive
and I've never had to re-fi.
James
If we had the option here, I would go for a longer term.
But when I went to check to see about exercising the option to lock in
for the rest of the 5 years (couple of years back), I discovered the
increase in the rate for the lock in was far too high.
I think I've always done better with variable rates.
James