Update: thanks everyone. Going with option 1 Option 1: 30 year fixed 6.99 interest rate APR: 7.089 Mutual mortgage of Omaha Option2: 5/6 Arm (interest rate locked for 5 years and will change every 6 months there after) 6.875 interest rate ApR: 7.45 Bank of West Given the current interest rates, chances of me refinancing in next 5 years seems high.
For 0.125%, you can have peace of mind that you won't be screwed if interest rates don't go down after 5 years. I would take the 30 year fixed.
Fixed then refinance later if rates go down
This is a stupid question
For blind this is top tier
Thanks for the helpful comment genius.
I got 30yr fixed for 6.5% interest from chase. No points. Not a jumbo.
When was it. Interest rates increased earlier this month like 3 days back.
Closed on it a 20ish days back
Chances you’ll refi are only high if rates go down. We’re still right around historical averages for rates so I’m not so sure why everyone thinks they’re going to drop back to what the were a year ago. Rates have been weirdly (and I’d say unsustainably) low for a long time, and we may not see rates that low again for many years. Given the rates you quoted there’s no reason to do the ARM.
I don’t think they’ll go back to 2s and 3s anytime soon, but low 5s is totally possible.
10s are also possible. None of us know. An arm is a bad bet.
Just FYI, Wells frog has jumbo loans for 6.125%
Thanks. Will look into it
Jesus when will interest rate go down , stick with 1
You should watch “The Big Short”, hopefully change any consideration for ARMs.
How long you want to stay in the new place ?
Planning to stay 5-10 years. Definitely at least 5 years. Only betting on refinancing when rates go down.