Hello!
My wife & I bought my grandparents house from their estate at the end of 2023. We bought the house for $420k & got a loan for $330k. Due to some issues with family & how the estate was set up, our best option at the time of closing was a 5/1 Arm at 6.25%
Our mortgage (including escrow) is $2,548.01/month. $56/day is simply interest. We currently owe $321k on the house & it is worth conservatively, $450k.
I know rates aren't much better currently but I wasn't sure at what point it would become worth it to refi to a fixed rate at either 20yr or 15yr. I worry that in 2028 when the first adjustment comes on the interest rate that we could have an even higher rate.
My wife & I are both 33yrs old & are teachers in central OH. Recently welcomed our 4th child. In our stage of life right now our two biggest expenses, by far, are this house & our childcare. Between the mortgage & childcare, my paycheck is essentially used each month to cover those items.
At what point or interest rate would you say it is worth going through the refi process? I figured potential positives of such a move include getting a fixed rate locked in vs. one that adjusts every 5yrs & if we could reduce the term to 20 or 15, still pay a similar or smaller amount & have the principal paid down faster that would also be nice!
Just brainstorming right now & have reached out to a few lenders to get initial info.
Would love your thoughts & thank you as always for sharing your thoughts & wisdom!
