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We just locked. We are getting a Fannie backed mortgage. 5% down, no PMI and a GREAT rate. In the end, we are only paying $30 more per month but now have the rate locked the entire length of the mortgage. Bye bye balloon.
We have a mortgage ~ $315k that is amortized over 30 years, but has a balloon after 10 years. This was a no fee/no cost loan and has a 4.25% APR. House is valued down to ~ $335k now. We thought we would sell prior to needing to refi, estimating we would do it 8 years into the loan. However we absolutely love everything about where we live so we are figuring on staying put much longer.
Now we are concerned on what the future will hold with what is going on in Washington and around the world. Many experts say several years out will have super high interest rates and inflation. Should we refi now at these historic rates into a full term (15, 20, 25 or 30yr), having to pay the closing costs in the process and maybe even getting a slightly higher rate or should we ride what we have until such point we have to refi or decide to sell?
This is such a tough decision for us. We hate to refi for no reason just to sell if we change our minds, yet don't want to have to refi at 10%+ if we stay and the rates go up. We just can't predict the future, but best guess says to lock it down this week.
We had a pleasant surprise. Our appraisal came in at $350,000.
Sooner or later, real estate and housing will get healthy again.
Sooner or later, interest rates will go much higher, and they have little apparent room to drop.
The value of your place, as long as you are not underwater, is not horribly important--you always need a place to live, and if you sell in a weak market you will also be buying in a weak market. But the key to any investment is being able to choose when to sell. Your current mortgage could put you in the position of having to sell--losing the key of being able to choose when to sell.
I would work to get into a fixed rate mortgage at similar or slightly higher terms than what you have now.
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Two things we know
