|
I wouldn't pay points
4.5% isn't a very good rate without points
My local credit union is offering (Rate % / Points / APR %)
30 Year Fixed Rate Home Loan - Purchase 2.875% -0.125 2.920%
20 Year Fixed Rate Home Loan - Purchase 2.875% -0.250 2.938%
15 Year Fixed Rate Home Loan - Purchase 2.375% 0.375 2.510%
10 Year Fixed Rate Home Loan - Purchase 3.125% 0.250 3.298%
I noticed for awhile now that for some reason 10 year loans aren't competitive.
Like redpoint said, shop around. Mortgages are a commodity product and your mortgage is going to be sold to someone else anyway so "service" doesn't matter.
I've looked into refinancing but have found out my mortgage is too small for lenders to bother with at least right now. We have $90,000 and 10 years left. A couple of banks have straight up said they aren't interested in mortgages under $150,000.
We have been looking at buying a rental house. Rental properties have higher rate than primary residences and our primary mortgage is too small to refinance. It seems the answer is to refinance with cash out and use the cash to buy the rental house.
|