I am looking into refinancing through Lakeshore Savings because they don’t require closing costs.
rates are really only “sure” to be low through mid-2015…after than if inflation creeps above 2% the fed will start jacking them up quickly
I did the penfed 5/5 at 3.125
today it’s at 2.85 or some even better BS.
it worked great, my only of of pocket was title insurance which by law cannot be paid by anybody else. Be wary of anybody else who claims to pay closing costs, they normally just roll them in somewhow.
am I scared of rates going up every 5 years? NO. I can’t lose, worst case it if bumps the max every 5 year until maxing out 5% above initial rate I’ll maybe break even. Plus I probably won’t own my house in 10 years anyway.
The only way I wouldn’t recommend this if if you can handle a 15 year term in which case you can get similar rates with zero risk.
If you have equity in the home, the rate for 30 year is 3.5% right now through the local banks, and online are advertising 2.75-3.068%. Would this still be better, and how does it factor out if you plan to live in the house 20+ years?
rates for 30 fixed were like 3.75-4 when I got 3.125
I’ll call BS on anything close to 2.75 without points or some catch on a 30 year. 3.5 sounds right which correlates to why the penfed 5/5 is 2.8 or whatever today, it will always be lower.
I’ll call BS on anybody under like 35 who says they expect to keep their house 20+ years, but in my case it would have worked out to better than even to about even under the worst case ride it out 30 years scenario.