[quote=no_such_reality]That’s the analysis paralysis.
Will the 3.25% Brexit induced mortgage last for seven months? Will it be longer? Or is it going to disappear in a month when the world realizes even with Brexit, it’s pretty much business as usual around the world?
It’s hard saying no to the lower rate, but the reality is the payback on the lower payment versus the funds to get it, is a little north of a decade.
Hence, if I can do a 3.5% for near zero out pocket. Or take a 3.625% for a net credit to my impounds.
Or maybe go conforming to $417K, back the rate up to 3.375% or even 3.5% and apply the credit to the balance to reduce the amount I need to bring to the table. How much credit will I get on a $417k at 3.5%? 1.5% about $7000 ( is the credit running about 1 pt per 1/8th?) Could I push it to 3.625% and get the banks to kick in half or more of the amount I need to get myself below $417K? Then if rates stay low for six months, I could refi lower and suck credits out.
If rates stay at this level for a year, could I walk myself below the $417K and essentially have the banks pay for the principal reduction by taking a higher interest rate for a year ( a grand total of an extra $1000 in interest)
Of course, if interest rates rise, I’m stuck with a 30 year at a rate lower than I’ve got now, but maybe a half point higher than it could have been. A net $25 grand or so over the life of the loan if I don’t refinance again.[/quote]
I think you need to look at it this way. Anything is better than doing nothing. 🙂
