Author Topic: Refinance question - what would you do?  (Read 421 times)

newloginuser

  • 5 O'Clock Shadow
  • *
  • Posts: 64
Refinance question - what would you do?
« on: March 16, 2020, 07:09:43 AM »
I work at a bank and just learned that as an employee, I get a full 100 bps (1.00%) off my residential mortgage if I were to have go through my employer. The only caveat is it only applies as long as I work here. So if I leave, retire, get fired then I have to pay without the discount going forward.

I have missed the 3.00% 30-year rate but Iím thinking of waiting to see if it goes back down (meaning Iíd have a 2.00% 30 year mortgage). Iím also tempted by the 15 year that was 2.5% (1.5% for me). What would you do?

Refinance now,

1. rates are roughly 3.50% for 30 year (2.5 for me).
2. 3.00% 15-year (2.00% for me).
3. Wait and do a 30 if rates get back down to 3.00 (or another number)?
4. Wait for 15 year rate to get to 2.50 (or another number)?

Being mustacian, I donít plan on working here for 30 years, and I donít think Iíd want a mortgage when I retire. I know the math says do a 30 and invest, and pay it off in a lump sum but I wanted to get anyoneís opinion.

Thanks!

Rdy2Fire

  • Bristles
  • ***
  • Posts: 262
Re: Refinance question - what would you do?
« Reply #1 on: March 16, 2020, 10:02:02 AM »
Somewhat unrelated to your question but relevant. I worked for a bank for many years, I had 1/2 pt off my mortgage. Assuming you refinance with them and the rate, minus 1 pt, is on your loan they can not change it after the fact.

Point being my loan was current rate, at the time, minus the discount, when I left I still had the discount because they can't make you refi and it's unlikely they have the capacity to give you a loan and then refund you 1%

newloginuser

  • 5 O'Clock Shadow
  • *
  • Posts: 64
Re: Refinance question - what would you do?
« Reply #2 on: March 16, 2020, 01:46:54 PM »
Somewhat unrelated to your question but relevant. I worked for a bank for many years, I had 1/2 pt off my mortgage. Assuming you refinance with them and the rate, minus 1 pt, is on your loan they can not change it after the fact.

Point being my loan was current rate, at the time, minus the discount, when I left I still had the discount because they can't make you refi and it's unlikely they have the capacity to give you a loan and then refund you 1%

Oh thatís good to know, Iíll have to look at the paperwork when I get it to see howís itís worded. I did wonder how theyíd just flip it in the middle of the loan (hypothetically) and then change our payment (which maybe is easy).

affordablehousing

  • Pencil Stache
  • ****
  • Posts: 512
Re: Refinance question - what would you do?
« Reply #3 on: March 16, 2020, 03:21:00 PM »
yes, refi now. 30 yr.