Chickenboy
Posts: 24520
Joined: 6/29/2002
From: San Antonio, TX
Status: offline
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ORIGINAL: anarchyintheuk
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ORIGINAL: Apollo11
Hi all,
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ORIGINAL: USS America
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ORIGINAL: Apollo11
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ORIGINAL: USS America
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ORIGINAL: Chickenboy
Closing on a mortgage refinance today. Woot me. 3.75% fixed 15 year rates are hard to pass up. For those of you in the US that are homeowners, you may want to look at your existing mortgage and consider it. This loan will be about 20% more every month than our previous 30 year fixed @ 4.75%, but we'll have full equity in the house in 15 years and we'll pay approximately 1/3 the interest that we would have otherwise paid over the life of the loan.
Alright, thus endeth my spiel...
Good move! 
Ours is a variable that keeps going down. LOL We just got notice that it is dropping to 3% for the next year. It can only increase by 1% each year, so at the first sign of increasing, we will refinance.
Please explain this in detail to us non-USA types so that we can understand what are you talking about... 
Leo, we're talking about our home loans. Chickenboy just refinanced (got a new loan to replace his old one) for a lower interest rate, which will be a fixed 3.75% interest per year for a 15 year loan.
I mentioned that our current home loan has a variable interest rate, which can go up or down 1 time per year, with a maximum rate change of 1% each year. Rates are quite low these days, and our loan interest rate has gone down for the last 3 years in a row. It will be 3% for the next year. If rates start to go higher next year, we will then refinance our loan for a fixed (unchanging) interest rate.
Thanks for info Mike!
So... you guy only pay 3.75 interest every year... oh my God... here it is 2-3 times more (around 8% - 10%)... and, BTW< refinancing is not possible in 99.99% of cases here... what you choose you got...
Leo "Apollo11"
Leo "Apollo11"
Unless there's some sort of prepayment penalty or clause against prepayment in your loan documents, I don't see why you couldn't involve a another party in your financing (assuming the rate difference would make it worthwhile).
He's right. As of a couple years ago, nearly all mortgages (all?) in this country have no prepayment penalty clauses.
3.75% fixed is pretty near a historic low. We bought our house 2 years ago at 6.5% @ 30 year fixed and refinanced about a year and a half ago. I recall in the late 70s/early 80s that home mortgages here were something like 12%. Yikes. That'll really cast a spanner in the housing market!
In this low interest rate environment, one benefits from fixing interest rates or refinancing from an "ARM": an adjustable rate mortgage. ARMs with baloon payments in years 5-7 a few years ago really nailed a lot of people. The initial lower interest rates on these loans can be dicey for some with tenuous control of their personal finances.
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