Just locked in a mortgage rate of 3.25%

The last time we refinanced our home, we locked in a rate of 4 5/8% for a 15 year mortgage. I honestly thought that that was the lowest rate I’d ever see in my lifetime.

But because the economy is still stalling, the Feds have reduced the prime even further. We were able to lock in a 10-year rate of 3.25% + $325 closing costs. IIRC 30 year rates were around 4%. These rates are unbelievable! I really wish we had the capacity to buy property or a 2nd home now, but with two kids in college next year, there’s no room for frivolity.

For those who are able to refinance, this may be a good time to crunch some numbers and/or roll home equity lines into a fixed rate mortgage. I hope for everyone’s sake that these rates are the lowest we’ll see in our lifetime!

Good for you.
Unfortunately, I see another housing crash coming-Obama is pushing banks to sign up less than credit-worthy costomers (to reduce the glut of nsold houses).
Which is what caused the present situation.

ralph124c, you’re seriously off-topic here. I’m not going to give you a warning for threadshitting/hijacking, but I could.

Don’t do this. If you want to talk about the economy, start your own thread.

twickster, MPSIMS moderator

Awesome! I refinanced my mortgage last December and got a 15-year rate of 3.5%. I figured this would be the best I could ever get, but I just looked and Wells Fargo is now advertising 3.25% for 15 year conforming loans!

I just started looking into this. My mortgage is already low (5%), but it’s a 30-year. Even if I could get it down to 3.75% for a 15-year, I’d be saving some serious scratch over the long haul.

“The average rate on a 15-year fixed mortgage, which is popular for refinancing, fell to 3.36 percent, also a record low. It’s the third straight week of record lows for the popular refinancing option. Freddie Mac’s records date to 1991, but analysts believe the new low on the 15-year mortgage is the lowest ever.”



Nice. I just locked in last week at 3.357% on a 15-year fixed, refinancing a 30-year at 4.875%. That’s less than my last car loan. Like you, am trying to figure out if I can buy more property to take advantage of the low rates. It’s not likely, but I love cheap money.

Corkboard: how did that affect your monthly payments? ( If you don’t mind me asking)

Interesting. Our initial 2-year lock-in comes to an end in December, and I am currently giving serious thought as to whether to go for a fixed or tracker mortgage. Either will reduce our monthly repayments as we have improved the property since we bought it, meaning we should now qualify for 75% LTV rather than the 90% we started with. Looks like the best fixed rates (for 5 years) are around 4% but we could get a tracker of around 2.5%. The difference in monthly repayments will be about 5% of our combined monthly income.

Since I believe that interest rates will remain low for the next couple of years, I am sorely tempted to go for the tracker, as it means that we can get our current payments as low as possible. Hopefully our earnings will then increase at a faster rate than the Bank of England base rate (I live in the UK by the way) so that when the rate does increase, it will be a relatively smaller percentage of income. Thoughts anyone (if the OP doesn’t mind the hijack)?

I don’t mind. For several years I’ve been paying more to principal every month than I need to in an effort to pay the 30-year off early, and every year I increase the additional amount a bit. At this point I’m paying about $500 extra each month. The re-fi will make my monthly payment about $100 more than I’m paying right now. It would have gone up by the same amount in a few months anyway, so it’s kind of a wash. The advantage is I can keep the payment flat for the next 15 years and still pay off the new loan in less time than if I kept increasing the payment under the 30-year loan.

I bought my first house about 7 years ago. The 30 year fixed rate was (IIRC) 3.99% or we could do an ARM at something like 3 and change and then re-fi in 5 years. I remember looking at the banker like she grew an extra head and saying “What, do you really think the rates are going to drop low enough that I’m going to risk not locking in 4%…where do I sign”. Don’t get me wrong, I’m still happy I locked in at 4%, I know it’s going to spike long before it’s paid off, and I ended up getting divoreced and resulting re-fi got me a better rate anyways (3.75% IIRC). On top of that, I have a prime rate HELOC that’s at 2.99% so I pay the minimum on the mortgage and put all my extra into the Line since I know that will go up at some point and my money is put to it’s best use there. The minimum on the line is about $50 (interest only) and I pay at least $200 per month, sometimes as much as $500-$600 on it. I like to think I’m being pretty aggressive with it. Once it’s paid down, or close to it, that extra money will start going to the mortgage, assuming I’m in a similar financial situation.

I need to look into refinancing. I have a 30 year fixed right now at 5.875%.

Do most banks offer 10-year mortgages?
I’ve got 12 years left on a 4.75% 20-year and I’d love to shave off two years and get a 3.25 rate.
Would US Bank offer this?

I’ve got a 25-year fixed rate of 3%. :slight_smile:

(I bought the house off my parents and I’m paying the “mortgage” directly to them. Everyone’s a winner - except the banks!)

The only bad thing is that your timely payments aren’t going to positively impact your credit score, which will in turn help you qualify for 0% financing on that Ferrari you’ve been eyeing.