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[as]

A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.

[davelj]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Personally I would take the 15-year fixed at 3.75% straight to the bank (no pun intended). If rates decline materially you can always re-fi. Optionality for the borrower is the beauty of a mortgage with no pre-payment penalty.

[davelj]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Personally I would take the 15-year fixed at 3.75% straight to the bank (no pun intended). If rates decline materially you can always re-fi. Optionality for the borrower is the beauty of a mortgage with no pre-payment penalty.

[davelj]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Personally I would take the 15-year fixed at 3.75% straight to the bank (no pun intended). If rates decline materially you can always re-fi. Optionality for the borrower is the beauty of a mortgage with no pre-payment penalty.

[davelj]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Personally I would take the 15-year fixed at 3.75% straight to the bank (no pun intended). If rates decline materially you can always re-fi. Optionality for the borrower is the beauty of a mortgage with no pre-payment penalty.

[davelj]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Personally I would take the 15-year fixed at 3.75% straight to the bank (no pun intended). If rates decline materially you can always re-fi. Optionality for the borrower is the beauty of a mortgage with no pre-payment penalty.

[teaboy]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Perhaps a more pertinent way to do an apples-to-apples comparison of a 15yr fix with a 30yr fix is to calculate the total interest difference between paying off the 15yr fix and paying off the 30yr fix by overpaying at the same mothly PITI as the 15yr fix. That difference represents the cost of having the flexibility with the 30yr fix to make smaller monthly payments, say if you lose your job for a period.

tb

[teaboy]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Perhaps a more pertinent way to do an apples-to-apples comparison of a 15yr fix with a 30yr fix is to calculate the total interest difference between paying off the 15yr fix and paying off the 30yr fix by overpaying at the same mothly PITI as the 15yr fix. That difference represents the cost of having the flexibility with the 30yr fix to make smaller monthly payments, say if you lose your job for a period.

tb

[teaboy]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Perhaps a more pertinent way to do an apples-to-apples comparison of a 15yr fix with a 30yr fix is to calculate the total interest difference between paying off the 15yr fix and paying off the 30yr fix by overpaying at the same mothly PITI as the 15yr fix. That difference represents the cost of having the flexibility with the 30yr fix to make smaller monthly payments, say if you lose your job for a period.

tb

[teaboy]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Perhaps a more pertinent way to do an apples-to-apples comparison of a 15yr fix with a 30yr fix is to calculate the total interest difference between paying off the 15yr fix and paying off the 30yr fix by overpaying at the same mothly PITI as the 15yr fix. That difference represents the cost of having the flexibility with the 30yr fix to make smaller monthly payments, say if you lose your job for a period.

tb

[teaboy]

[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]

Perhaps a more pertinent way to do an apples-to-apples comparison of a 15yr fix with a 30yr fix is to calculate the total interest difference between paying off the 15yr fix and paying off the 30yr fix by overpaying at the same mothly PITI as the 15yr fix. That difference represents the cost of having the flexibility with the 30yr fix to make smaller monthly payments, say if you lose your job for a period.

tb

[as]

Thanks, guys.

I just called Amerisave and the guy offered 3.625% for 15-year fixed at no points, no cost. Did sb. mention amerisave is not good on this board? I don’t remember which company sb. mentioned before that is not good. Anybody here has dealed with them before?

Flu, you are probably right. It seems 15-year fixed will be 3.5%.

Thanks again, guys.

[as]

Thanks, guys.

I just called Amerisave and the guy offered 3.625% for 15-year fixed at no points, no cost. Did sb. mention amerisave is not good on this board? I don’t remember which company sb. mentioned before that is not good. Anybody here has dealed with them before?

Flu, you are probably right. It seems 15-year fixed will be 3.5%.

Thanks again, guys.

[as]

Thanks, guys.

I just called Amerisave and the guy offered 3.625% for 15-year fixed at no points, no cost. Did sb. mention amerisave is not good on this board? I don’t remember which company sb. mentioned before that is not good. Anybody here has dealed with them before?

Flu, you are probably right. It seems 15-year fixed will be 3.5%.

Thanks again, guys.

[as]

Thanks, guys.

I just called Amerisave and the guy offered 3.625% for 15-year fixed at no points, no cost. Did sb. mention amerisave is not good on this board? I don’t remember which company sb. mentioned before that is not good. Anybody here has dealed with them before?

Flu, you are probably right. It seems 15-year fixed will be 3.5%.

Thanks again, guys.

[Author]

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