Author Topic: Mortgage rate - how much?  (Read 856 times)

BostonBrit

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Mortgage rate - how much?
« on: October 22, 2019, 11:16:12 AM »
In a similar vein to the "car insurance - how much thread?" I started a few days back I was just wondering if it was worth starting a thread to compare mortgage rates.

With the 10yr dropping to ~1.8 and 2.5 years into a 7/1 ARM, I was considering refinancing. The 10yr was at 2.4 when I arranged and I had no credit score having recently moved to the US.

My current loan has 4.5 yrs to run as above.

- Jumbo loan (not Moustachian I appreciate)
- 80% LTV at signing - now 63% due to growing equity.
- 7/1 ARM (2.5 years in)
- 2.85%

I'm keen to see if anyone has been getting rates materially below this 2.85% to see if worth the effort of shopping around etc.

Obviously above and beyond the headline rate there is the need to consider costs and duration of the fixed rate.

Thanks in advance!

nereo

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Re: Mortgage rate - how much?
« Reply #1 on: October 22, 2019, 12:38:51 PM »
Have you compared the benefits of holding a 30y mortgage over your much shorter 10y?  If you have additional tax-advantaged 'head space' it generally makes more sense to go with the longer term and devote more of your cashflow into savings, even though it requires more interest. 
I recently opened at 3.7% 30y/fixed (no points).  I think it's gone down slightly from that since our closing.

BostonBrit

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Re: Mortgage rate - how much?
« Reply #2 on: October 22, 2019, 01:48:09 PM »
Have you compared the benefits of holding a 30y mortgage over your much shorter 10y?  If you have additional tax-advantaged 'head space' it generally makes more sense to go with the longer term and devote more of your cashflow into savings, even though it requires more interest. 
I recently opened at 3.7% 30y/fixed (no points).  I think it's gone down slightly from that since our closing.

Apologies if I wasn't clear. We actually have a 30 year repayment term with a 7/1 ARM. We bought the property/started the loan 2.5 years ago. So still 27.5 years left on the mortgage.

As you say, my strategy, which I appreciate is at odds with others is to deploy excess cashflow into equities/savings rather than pay off debt at 2.85% (~2% post tax for a good slug).

Just trying to get a handle if others are getting much better rates than 2.85% (given the lack of transparency with US lenders) and it's worth shopping around.

clarkfan1979

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Re: Mortgage rate - how much?
« Reply #3 on: October 23, 2019, 06:45:20 AM »
We got 4.125% on a purchase of a primary. No origination fee or appraisal fee. I did a cash out re-fi on a rental property and got 4.875 with 0.6 points, that cost me an additional $1,130.