Price: 1.075 mil 10% down Got 3.65% rate for 30 year fixed loan and 3.15% for 7/1 ARM from KeyBank without mortgage insurance. Inclined towards 30 yr loan. What do you think? Is this a good rate for this week? Update: when I checked the amortization schedule for arm vs fixed, looks it will be $266 monthly savings in mortgage payment which is 16k over 5 years and little bit more principal payment which is 7k. So roughly with 3.15% I will save 25k over 5 years compared to 3.65% fixed. However, it's taking more risk and betting on lower interest rates in future. I think with 25k amortized savings over 5 years is ok to pass compared to stability in locking a rate for 30 years. If rates are going lower anyway can refi in both cases. #Seattle #housing #mortgage
Go to Costcofinance.com and see what rates they offer. Takes 1 minute. You don’t need to be a Costco member. Compare your rate to their rates.
I found keybank Lower thank Costco back then fyi
Yeah, it’s a datapoint, not a guarantee
Way too high
Rates seem to have increased this week quite high
No I got 4.2 everywhere with 20% down
I don't suggest 30years fixed at all 7/1 or 10/1 are best You also pay less in interest I prefer 10/1 In another 10 years there will be recession and time for interests to be lower So, don't select a higher interest now that the market is already at higher rates
I checked the amortized schedule and looks like it's mostly 50k savings at best over first 5 years. If I choose ARM I need to take refi anyway around that time. But rates could be higher than 4% for next couple of years. Hence, wondering if 30 yr fixed is decent for the stability and in future even if rates decrease we can refi as necessary. This logic only works as the difference between fixed and arm is 0.5% only. If arm is below 3% it would have been great.
First of all 50k in five years is 5% of your home price Secondly, it's not only 0.5%...dont make such mistakes. Calculate the d% change between the rates. I think 0.5% is equal to almost 20% of more monthly payment. With a lower rate you could invest this additional payment on the principal
30 year fixed is still better as of now, since rates are still at a historical low. I’d go with 30 year fixed. Refinance later if rates are lower and by that time you will build equity in the house too. 7/1 or 10/1 if you plan to live there only for that period of time and are saving on interest.
Is this a jumbo loan? I didn’t realize those were very common with just 10% down
Yes it comes under jumbo
Through keybank? Can I ask what kind of cash reserves they required? And did they let you use your 401k to satisfy the cash reserve requirement?
7 years is a very long time . Take the ARM and refinance later
Check first tech federal union. I got good rates but it was 3 week before
Yes they were suggesting 80/10/10 loan with higher interest rates
What did you finally do? Fixed or ARM? reasoning? I am in the same situation right now.
Went with fixed as arm rate was only 0.5% better in my scenario and the amortized savings with arm wasn't making a big difference.
3.65 is amazing for this week