FSBO,
Under some circumstances your objective is fine. If the spread between what you have and prevailing rates is enough to get you a “no cost loan”, that betters your situation,than that is an option. Maybe you are looking at keeping the loan for much less than the full 360 payments too(Who isn’t?).Maybe you have an indefinate timeframe and don’t want to spend thousands upfront or roll them into the loan. Maybe rates will actually go down further and you can use some dough to refinance then if you want to.
HLS, When rates were 4.5%, what was the fair “no cost” rate? (Best qualified borrower, low LTV).
There many people out there with 6.25% and higher and shorter or indefinate timeframes in mind for having the loan.
