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Mortgage Rates … what to do? March 19, 2009

Posted by shwaldman in Society.
Tags: , ,

The mortgage rates keep dropping and dropping. We just bought this house last year, but if we can get our interest rate another 1% lower, it might make sense to pay the costs. But what if the rates keep going down. Even though the stock market has had a few good days, the economy is not getting better any time soon. So what to do…?

I called a couple of lenders this morning. It looks like we can get a lower our rate by 1.125% for a cost that would only take us 17 months to pay back. And in the meantime the amount of total interest we would have over the course of the load would drop by $70K – that is just a crazy number. These days there are still lots of mortgage program options and they will give you any rate as long as you are willing to pay additional lender fees. And free float down options protect you if the rate drops by more than 1/4 percent between the lock and closing.

So, I am going sit on this decision for the weekend and see how it feels on Monday morning. I still feel like we are not out of this economy funk. We just have to see how low the rates go. I am sort of want to wait, but I don’t want to miss out on such a low rate.



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