The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Archipelago on August 17, 2019, 06:56:28 PM
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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.
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Why such a huge spread? I just locked in at 3.500% for a 30yr
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Why such a huge spread? I just locked in at 3.500% for a 30yr
Where did you get that?
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Why such a huge spread? I just locked in at 3.500% for a 30yr
Where did you get that?
Local credit union
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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.
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AimLoan has 30yr loans for 3.625%
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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.
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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.
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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)
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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.