OT: interest rates

[Smiley]

Anybody check out interest rates lately they are very low, I just locked us in to 4% for 15 years no points despite being at 5.5% already at 15 years and having finished 6 years of payments at that rate I still only end up paying 10K more total for the remaining amount. I had to take this path with my wife out of work right now. Check it out.

[1centaur]

Yes, this is a once in many generations opportunity to lock in low rates. My 5/1 is resetting to 3.375 starting August 1 for the following year, but my trigger finger is starting to itch.

This is not to say that people should load up on cheap rates to invest in real estate. That might turn out to be great, but if we actually get deflation in housing the low rate won't compensate for a levered investment declining. Better to let rates come off the bottom as a confirmation that deflation is unlikely before looking at the investment aspect. But if you already have that levered investment, it's worth paying attention to the arithmetic. Rates COULD go lower, but if you go for no points and low/no fees you can always do it again. Supposedly need plenty of documentation this time around.

[vqdriver]

which bank? conforming? jumbo?

[Karin Kirk]

Good call Smiley. We closed on our refinanced home loan about 3 weeks ago. 4.25%, 15 years. We did the math on how much this is saving us and we're pumped!

vq, ours is just a standard fixed rate loan. We got it through our favorite local bank, but Fannie Mae was the actual investor.

[VTCaraco]

We just closed on a 4 1/8% (10-year fixed), pulling some money for some home improvements. Like Karin, ours is with our favorite local bank.
Our lawyer was flabbergasted at how little interest we'll pay over the life of the loan. He was saying that he never thought that he'd see numbers like this.

And rates are down to 4% as of this week.