Refinance question - what would you do?

[newloginuser]

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 I’m thinking of waiting to see if it goes back down (meaning I’d have a 2.00% 30 year mortgage). I’m 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 don’t plan on working here for 30 years, and I don’t think I’d 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 anyone’s opinion.

Thanks!

[Rdy2Fire]

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]

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 that’s good to know, I’ll have to look at the paperwork when I get it to see how’s it’s worded. I did wonder how they’d just flip it in the middle of the loan (hypothetically) and then change our payment (which maybe is easy).

[affordablehousing]

yes, refi now. 30 yr.

[newloginuser]

So loan docs ended up not saying anything about the discount. They do it all behind the scenes. Still getting my 100 bus off, which is amazing with how low rates are.

[Rdy2Fire]

So loan docs ended up not saying anything about the discount. They do it all behind the scenes. Still getting my 100 bus off, which is amazing with how low rates are.

Yeah you'll have the rate for the life of the loan. Congrats!