that 3.375 was with a 5 or 6 k credit, too, after final negotiations, as described below…
in retrospect, it was almost impeccable short term timing, but at the time, I thought it was dumb, I wanted to wait, i was pretty positive rates would go lower but not much lower, and i was jumping the gun a bit at 3.375 or 3.25 without the credit. Since I was fairly certain there was at least another 1/4 of a point to go, I immediately started the process, knowing that whenever I am sure of something I am almost always wrong.
the only thing I know and have learned is that I’m pretty out of touch with what’s going to happen and that if it’s a good deal, and I’m pretty happy, I should probably go for it. The perfect is the enemy of the good. If your marriage is not so bad, stay in it! leave a bit of money on the table. a good plea is much better than a trial…etc…
This is all very clear and has always been clear to me and simple to accept while advising other people how to act, in my capacity as a lawyer…but is harder to put into play in my own affairs, since I sometimes i think I know more than I do. It’s much easier to give other people advice than to truly embrace it in your own life.
the cool thing I did, that i do take full credit and responsibility for, was after the appraisal came back at more than 30% equity in the house. I was able to negotiate another $1,000 to the credit based on that, since the rate would have been lower (or credit higher) had I applied initially with 30% equity. i only claimed 20% equity, slightly optimistically and was suprised when it came in high. that was pretty swift! today, it’s probably close to 50% equity, I don’t expect to ever be able to refi at a lower rate, but Im not certain about that. so it probably won’t happen.
Another example is I was PRETTY CERTAIN I would be underwater in this house for bare minimum 5 years, probably more like 10, when I bought it. I thought I might come out ahead after 15 to 20 years. Obviously, I do not know.
due to out general frugal nature, we seem to be ok. I owe it all to the book we read in 2001 when we had 20,000 in credit card debt, and 35,000 in total income, and kids…. THE TIGHTWAD GAZETTE
