Got a 1 year freeze on my rate of 4.5% in 2022 for a new construction. What a good move I made back then. I still look back at it in awe
The adjustables were tempting but risky and now we see it

Anonymous wrote:10/5. Let’s see what happens in 2035

Wow, would love to be in a 10/5 right now, especially if it has a cap on increases. Well done.

10/5. Let’s see what happens in 2035

They're called realtors and they're trying to get your money. Rates could go lower, but it's irresponsible to push people to buy more than they can afford.

The economy is about to head off a cliff between the irresponsible "big beautiful bill" that is fueling worries about our country's credit rating and the tariffs. Good luck to everyone hoping that rates will magically be lower in a few years.

We did the same. 5.15 in Fall 2024. We will need to refinance by 2029…

We did a 5/5 at 5.75. It resets in 2028, so I'm hoping for a solid dip before then unless we decide to sell it. We could manage the adjustment to 7.75 but it won't be comfortable. Beyond that it would be impossible.

Anonymous wrote:This is just bad advice from real estate agents and mortgage brokers that want to make money off of you. Don't buy a house unless you can afford it woth current interest rates. There is no guarantee that rates will go down and you will be able to refinance for a lower payment later.

Obviously. I can't believe anyone was pushing buyers into buying a house that they couldn't afford at the current rates with the hope that they may go down. More for people who had to buy and who could afford the current rates but would be better off if the rates went down. Hopefully not too many people bought houses that they couldn't afford. That's just stupid.

Anonymous wrote:This is just bad advice from real estate agents and mortgage brokers that want to make money off of you. Don't buy a house unless you can afford it woth current interest rates. There is no guarantee that rates will go down and you will be able to refinance for a lower payment later.

I work at a bank and the 5/5 is getting popular. It locks in rates for five years and only adjusts every five years. But mainly refinancing folks with lots of equity or second mortgages.

But most people still doing 30 year mortgages even at today’s high rates.

I be very comfortable doing 5/5 on a retirement snowbird beach condo or bungalow second home. At my bank most of those buyers are 65-75 anyhow. Sadly resets don’t really matter at that age.

This is just bad advice from real estate agents and mortgage brokers that want to make money off of you. Don't buy a house unless you can afford it woth current interest rates. There is no guarantee that rates will go down and you will be able to refinance for a lower payment later.

Back in 2022 when mortgage rates started rising and homes still flying up realtors were pushing “date the rate”

Get the 3/1, 5/1, 5/5, 7/1 etc. you save on mortgage payments now and can refinance later when rates fall.

However a lot had teaser rates and at each adjustment goes up 2 percent. And that’s every year and in some even every six months.

Everything is fine now. But what happens if rates stay high next several years? Now it is starting to look like no rate cut at all in 2025.