Quote:
Originally Posted by Hondaracer
I’d say you have to be an extremely cautious person to take the 10 year lol
The extra percentage taken off the principal would hurt. The question would be where do you see rates in 5 years. I’d be willing to bet they will still be reasonably low. There’s so much bullshit to sort through in terms of what you would need to come out ahead, fees and switching lenders etc
Personally I have about 16 months left on mine and I looked into a blended rate but after fees and even credits I’m pretty much even so to me, I feel like I will wait it out until I’m clear of any fees in that sub 6 month period and then lock into the 5 year fixed rate at that time and the additional length of time I’m at that rate will hopefully be more profitable than going blended earlier. If that makes sense
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https://gyazo.com/b44ab67f19bdb0ce6a482d7647a1a7b2
Ran the analysis, you are way ahead with 1.69% Interest and 4.4% from Year 6 - 10.
1.69% Year 1 - 5 and 4.4% Year 6 - 10 ($75,139.60 Interest , $149,409.31 Principle Paid)
1.89% Year 1 -7 and 5.05% Year 8 - 10 ($84,094.30 Interest, $145,723.16 Princple Paid)
2.34% Year 1 - 10 ($104,285.60 Interest, $137,657.55 Principle Paid)