Cannot believe the interest rate I got on a 30 year.

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I'm pretty pumped. Got a 2.6% fixed rate on a 30 year mortgage for my home. I am absolutely shocked and never thought I'd see the day that a rate like that wasn't a 15 year loan. Wanted to do a 15 year like Dave Ramsey recommends, but just didn't want to commit to such a larger payment at this time. banana Coffee2
 
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I'm not seeing below 2.75% on any wholesale rate sheets for 30 year fixed. I'm considering pulling trigger on a 2.75% with enough credits to cover all costs. How'd you get 2.6
 
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Wow, that's impressive! Good job. The construction loan for my 2002 FL home was something like 8.5% after it converted to a 30 year. They made a lot of money off of me.
 

SouthDakotaDad

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Originally Posted by dareo
I'm not seeing below 2.75% on any wholesale rate sheets for 30 year fixed. I'm considering pulling trigger on a 2.75% with enough credits to cover all costs. How'd you get 2.6
The loan before this was at 4.125%. It was a refinance and maybe that makes a difference? It is a VA loan through this deal called "IRRRL". I am not super smart on this stuff for sure.
 
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Originally Posted by SouthDakotaDad
I'm pretty pumped. Got a 2.6% fixed rate on a 30 year mortgage for my home. I am absolutely shocked and never thought I'd see the day that a rate like that wasn't a 15 year loan. Wanted to do a 15 year like Dave Ramsey recommends, but just didn't want to commit to such a larger payment at this time. banana Coffee2
Congratulations.
 
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Great rate! Easy to make the mortgage you just got into a 15 year with no commitment or cost what so ever. Just make a set extra principle payment euth your regular payment every month, house paid off in 15 years. Best part is if you ever fall on hard times you can stop making the monthly extra principle payments. Simply go online to a mortgage calculator to figure out the extra monthly payment required. Time goes by quick and in just a few years you will be glad you did it when you see the end of mortgage payments are the light at the end of the tunnel. Ps. Dave Ramsey is an amazing personality, should be a required course to graduate high school.
 
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Its a great rate for sure. I cannot believe how low CD rates pay for us that are close to retirement. It's great for anyone who wants to borrow money.
 
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Also performing a VA IRRRL (thanks wife), VA and FHA has some the most aggressive rates right now. FHA faces heavy PMI whereas VA does not. Fantastic rate, and i would lock it up if not already locked. Seems rates ticking slightly higher (less credit at 2.75%) than a few days ago.
 

ZeeOSix

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Originally Posted by SouthDakotaDad
I'm pretty pumped. Got a 2.6% fixed rate on a 30 year mortgage for my home. I am absolutely shocked and never thought I'd see the day that a rate like that wasn't a 15 year loan. Wanted to do a 15 year like Dave Ramsey recommends, but just didn't want to commit to such a larger payment at this time.
What was the interest rate for a 15 year loan? Probably not much lower, so going 30 year was a decent move.
 
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Today the cost difference for 15 year vs 30 years is about 300 basis points (.3%) of the loan, or hardly any cheaper to go 15 vs 30. Investors running to the safety of govt insured mortgages.
 
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I thought the 3.25% we got a few months ago was as low as it would go ! Our realtor suggested we not take the chance of it going up and lock in at 3.25% too.
 
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Originally Posted by sloinker
VA charges a 1 point funding fee so don't forget to add that to the math.
IRRRL is only half point funding fee so refi is cheap.
 
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Originally Posted by SouthDakotaDad
I'm pretty pumped. Got a 2.6% fixed rate on a 30 year mortgage for my home. I am absolutely shocked and never thought I'd see the day that a rate like that wasn't a 15 year loan. Wanted to do a 15 year like Dave Ramsey recommends, but just didn't want to commit to such a larger payment at this time. banana Coffee2
Well done; close to free $$. Dave Ramsey is for people who are in financial trouble; I disagree with a lot of his assumptions. As others have posted, put extra into the loan and you can mimic a 15 year term. Good luck and pay that sucker off!
 
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Originally Posted by JeffKeryk
Originally Posted by SouthDakotaDad
I'm pretty pumped. Got a 2.6% fixed rate on a 30 year mortgage for my home. I am absolutely shocked and never thought I'd see the day that a rate like that wasn't a 15 year loan. Wanted to do a 15 year like Dave Ramsey recommends, but just didn't want to commit to such a larger payment at this time. banana Coffee2
Well done; close to free $$. Dave Ramsey is for people who are in financial trouble; I disagree with a lot of his assumptions. As others have posted, put extra into the loan and you can mimic a 15 year term. Good luck and pay that sucker off!
Actually your 200% wrong but don't want to hijack this thread, read up, read a book go to Dave Ramsey's website. He is about building wealth and not having to borrow money from other people and banks to buy things. You have it backwards, borrowing money to buy things is for the poor. The rich and self sufficient do not. It is true he and his mission is to help people get out of debt and be independent of borrowing money, now isn't that a good concept!
 
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Originally Posted by SouthDakotaDad
I'm pretty pumped. Got a 2.6% fixed rate on a 30 year mortgage for my home. I am absolutely shocked and never thought I'd see the day that a rate like that wasn't a 15 year loan. Wanted to do a 15 year like Dave Ramsey recommends, but just didn't want to commit to such a larger payment at this time. banana Coffee2
2.6% is just an illusion. You do realize you're paying over 50% interest the first 2 or 3 years and still paying around 40% interest after ten years?
 
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Congratulations. Our mortgage system is different in Canada with terms from 6 months 5 years, but currently you can get a 5 year term at 2.64 %. Yep, how low can you go. There are some 10 year terms out there but at higher rates. smile
 
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Originally Posted by atikovi
Originally Posted by SouthDakotaDad
I'm pretty pumped. Got a 2.6% fixed rate on a 30 year mortgage for my home. I am absolutely shocked and never thought I'd see the day that a rate like that wasn't a 15 year loan. Wanted to do a 15 year like Dave Ramsey recommends, but just didn't want to commit to such a larger payment at this time. banana Coffee2
2.6% is just an illusion. You do realize you're paying over 50% interest the first 2 or 3 years and still paying around 40% interest after ten years?
Yes, but you can always make larger payment to pay it off like a 15 year or shorter loan, and if you run into financial difficulties you've always got the option of only having to make the minimum 30 year amount to keep the roof over your head.
 
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