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Crystal Ball on Mortgage Rates

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    Crystal Ball on Mortgage Rates

    Anyone care to speculate what they think the mortgage rates might do? We are looking at refinancing and pondering when to pull the trigger. We are currently at 5.875 on a 30 year note. No maat55, I am not going to a 15, so don't bother with the arguement We are hoping to get around 4.5 - 4.75. It looks more like 4.75 b/c we don't escrow taxes, etc... so we would end up with a slightly higher rate. We are waiting until it hits that 4.5mark again and then the 1/4 point non-escrow would take it to 4.75.

    I know it is all speculation.

    #2
    Originally posted by Snave View Post
    Anyone care to speculate what they think the mortgage rates might do? We are looking at refinancing and pondering when to pull the trigger. We are currently at 5.875 on a 30 year note. No maat55, I am not going to a 15, so don't bother with the arguement We are hoping to get around 4.5 - 4.75. It looks more like 4.75 b/c we don't escrow taxes, etc... so we would end up with a slightly higher rate. We are waiting until it hits that 4.5mark again and then the 1/4 point non-escrow would take it to 4.75.

    I know it is all speculation.
    Now, when was the last time you saw me advise a 15 year note? I like 20 with extra payments.

    I'm enlightened to the fact that some areas are less contusive to the 15 year note. I still think it is the wiser financial choice.

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      #3
      No reason to get greedy... if you save 8 percent on current payment, that is one extra payment saved per year.

      Anything over the 8 percent is pure greed (IMO).

      Comment


        #4
        In general, the last 2 times we refied we dropped about one full percent and lowered our payments $200/month. Just how it worked out, but was definitely the "I can't let this get away, who cares about the slim chance that rates will get lower" thing. I guess $200/month savings is my personal tipping point.

        It wouldn't be the worst thing to sit on the sidelines and wait it out a bit. Rates are just bouncing around so much. I am not sure I would be dead set on holding out for 4.75 if you could lock in 4.875 tomorrow though. (I just waited a year to get 5%, and ended up with 4.875%. But I was happy to keep 5.75% forever if that's what I ended up with). If you are going to hate yourself forever for not at least getting 5.25 or something, well, that's another story. Then I'd say, what are you waiting for?

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          #5
          I could have 5.0% right now and that is with the +.25% b/c we do not escrow. I have a friend in the business and is getting the loan info all set up and is waiting to pull the trigger if it goes lower. A few weeks ago it dropped to 4.5 for a few hours (which would be 4.75 with my non-escrow 1/4 pt increase).

          Comment


            #6
            Originally posted by Snave View Post
            I could have 5.0% right now and that is with the +.25% b/c we do not escrow. I have a friend in the business and is getting the loan info all set up and is waiting to pull the trigger if it goes lower. A few weeks ago it dropped to 4.5 for a few hours (which would be 4.75 with my non-escrow 1/4 pt increase).
            I'm working with Wells Fargo and as long as I have 20% equity they don't jack the rate to not escrow my taxes. Have you looked at Wells? Maybe you could actually get the 4.75%?

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              #7
              Thanks on Wells Fargo. I'll check.

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