Feeling good about my 3.75% 30 yt mortgage

[Anonymous]

Anonymous wrote:We are at 2.875 for a 15 year with no points. I felt pretty good about it, but I guess there are a few people here that have me beat.

Don't worry PP, these are all historically incredible rates. We got 3.6% on a 30 and feel great about it. But I also felt great about the 4.7% I got on my last loan 9 years ago. My parents never miss a chance to remind me they paid 12% (!) when they bought a house in the early 80s. I do worry for those trying to get into the market 4-5 years from now, looking at higher rates & the insane price of homes here.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Builder and mortgage broker told me I was crazy 2 years ago to lock in at 3.75% for 30 years. My builder went into great detail describing his 2.75% ARM and how much he was saving. Did I pay more for a couple years? Yes. Rates could be close to 6% by then end of this year - and I’ve got 3.75% basically forever.

You gonna own that house and not refinance for the next 28 years?

Rates are never going to go below 3.75 again...

I'll take that bet

[Anonymous]

Anonymous wrote:I also took out a 30 year loan at 3.75% a few years ago -- the unfortunate thing is we may need to move. So will likely have a higher rate in the future.

biggest reason people should look at ARM's - many will move. I took a 2.25% ARM with a one year cap at 1%..shoot I will be 5 years in before it reaches 4.25% and guess what..I'm moving

[Anonymous]

Actually refinancing to our current rate of 3.125% for my 30 yr mortgage is one of the greatest things to come out of reading DCUM. After reading this forum in fall of 2016, I contacted several banks and ended up refinancing from our 10 year 3.75% mortgage to my current rate. Am very glad we locked it in when we did as we now think we'll be in our home for a much longer time.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Congratulations. 30 yr 2.625% here, looking to try and increase monthly payments soon.

When did you get 2.625 for a 30? You'd be hard pressed to get that for 15 when rates were at their lowest.

Several years ago we got a 15 year at 2.5. So, it was very possible when they were at their lowest.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are at 2.875 for a 15 year with no points. I felt pretty good about it, but I guess there are a few people here that have me beat.

Don't worry PP, these are all historically incredible rates. We got 3.6% on a 30 and feel great about it. But I also felt great about the 4.7% I got on my last loan 9 years ago. My parents never miss a chance to remind me they paid 12% (!) when they bought a house in the early 80s. I do worry for those trying to get into the market 4-5 years from now, looking at higher rates & the insane price of homes here.

Folks may have paid 12%, back in the 80s. But ironically homes back then in DC were relatively more affordable because incomes used to keep up with prices back then. Incomes have been flat for 30 years. and prices have gone through the roof.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Congratulations. 30 yr 2.625% here, looking to try and increase monthly payments soon.

When did you get 2.625 for a 30? You'd be hard pressed to get that for 15 when rates were at their lowest.

Several years ago we got a 15 year at 2.5. So, it was very possible when they were at their lowest.

2.625 for 30 is very different from 2.5 for 30. 30 never went that low without points.

[Anonymous]

I have a 4.25 for a 30 year, but now only 6 years left b4 it's paid off.

With only 6 years left, I assume it doesn't make sense to refinance. Is that correct?

[Anonymous]

Anonymous wrote:I have a 4.25 for a 30 year, but now only 6 years left b4 it's paid off.

With only 6 years left, I assume it doesn't make sense to refinance. Is that correct?

The easy answer is no it makes no sense. A refi has costs which add to the loan. What happens in 6 years will you be retired? Losing the mortgage int deduction if your still working while not a major factor could have some impact. Also how marketable is this home? If needed could it sell for a good price with limited additional money invested to improve? My parents have a net worth of barely 400K but their home makes up 250K of that so no liquidity/ too heavily house dependent,, but they are old so not too big of a deal. My same scenario is much the opposite I have house equity but it makes up only about 10% and it won't be paid off in my lifetime but I will sell it and downsize when kids leave in 3 years.

[Anonymous]

We got a 30 year VS for 3.22% and might never move.

[Anonymous]

Anonymous wrote:We got a 30 year VS for 3.22% and might never move.

You do know with every payment the low rate is less valuable.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We got a 30 year VS for 3.22% and might never move.

You do know with every payment the low rate is less valuable.

That should say VA loan. What do you mean less valuable? With every payment i am paying less interest and that is valuable to me. We are planning on having the loan paid off in 15 years.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We got a 30 year VS for 3.22% and might never move.

You do know with every payment the low rate is less valuable.

That should say VA loan. What do you mean less valuable? With every payment i am paying less interest and that is valuable to me. We are planning on having the loan paid off in 15 years.

The low interest rate is less valuable as each year goes by as more of payment is principal than interest.

If you locked in a low 30 rate in Nov 2016 when Trump was elected you have very little equity so to move homes and pay a higher rated on whole balance would be a killer.

But if you locked in a low 30 year rate Spring 2003 you are 15 years into mortgage so monthly payment is now a large part principal and you have equity.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Congratulations. 30 yr 2.625% here, looking to try and increase monthly payments soon.

30 yr rates never came close to that, unless you bought it down with points. The average never go much lower than 3.5%.

We got 30 at 3.25 around 45 years ago.

Counting blessings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Congratulations. 30 yr 2.625% here, looking to try and increase monthly payments soon.

30 yr rates never came close to that, unless you bought it down with points. The average never go much lower than 3.5%.

We got 30 at 3.25 around 45 years ago.

Counting blessings.

Five years ago NOT forty five