The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Archipelago on August 17, 2019, 06:56:28 PM

Title: [Delete]
Post by: Archipelago on August 17, 2019, 06:56:28 PM
[Delete]
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: SwordGuy on August 17, 2019, 07:14:20 PM
15 year if I could afford the payments.   (Then again, if I couldn't afford 15 year payments it probably means I can't truly afford 30 year payments either...)

I can beat 3.125% in the market without trying real hard, but 5.6% is a lot harder to beat.
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: HPstache on August 17, 2019, 07:20:00 PM
Why such a huge spread?  I just locked in at 3.500% for a 30yr
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: AnxietyFly on August 17, 2019, 07:50:29 PM
Why such a huge spread?  I just locked in at 3.500% for a 30yr

Where did you get that?
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: HPstache on August 17, 2019, 08:16:56 PM
Why such a huge spread?  I just locked in at 3.500% for a 30yr

Where did you get that?

Local credit union
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: sailinlight on August 17, 2019, 08:47:17 PM
You really need to shop around if you're getting a 30 year at over five percent. It should be less than four if your credit is decent.
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: Goldy on August 17, 2019, 08:54:44 PM
AimLoan has 30yr loans for 3.625%
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: RWD on August 17, 2019, 10:10:58 PM
That is exactly my mortgage: 15 years at 3.125%. The 30 year fixed rate we were offered was 3.875%, but we don't plan to stay here long enough for that to have been worth it.
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: moonpalace on August 18, 2019, 05:08:31 AM
Why such a huge spread?  I just locked in at 3.500% for a 30yr

Where did you get that?

Local credit union

We're currently locked in on a 30-year 3.5% from Rocket Mortgage. Credit scores for wife and I are ~800.
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: Bernard on August 18, 2019, 12:29:55 PM
First, as others have said, if you pay 3.125% for a 15 year, you'll be able to get a 30-year for under 4%.
Shop around.

That out of the way, it's a 30-year all the way, even if Dave Ramsey disagrees, and here is the reason why:

https://www.youtube.com/watch?v=BJ3xhjqk52A (https://www.youtube.com/watch?v=BJ3xhjqk52A)
Title: Re: 30 year mortgage at 5.6% or 15 year at 3.125%
Post by: Ichabod on August 18, 2019, 12:58:57 PM
At that spread, I'd go for the fifteen. It would take years, maybe a decade, before any investments could overcome the interest savings. The interest is on a much larger balance even if you have investment options with a higher rate of return.