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Before I ask my question, I'll provide the foundation for it:
Now to my question, given our credit scores will take a hit due to both the inquiries and the new mortgage; if interest rates drop in say six months, does it make sense to refinance immediately, or to wait until the new account and inquiries age to a year (which of course might see additional interest rate changes)?
If you wait a year lenders may have switched to Fico 10T and VS4. The change is scheduled for2025.
There is no evidence that inflation is dropping and another rate hike may happen. Odds for a rate drop this year appear low.
If you want a lower rate and less total interest payments, consider a 15 year loan vs 30 year when refinancing.
@Thomas_Thumb wrote:If you wait a year lenders may have switched to Fico 10T and VS4. The change is scheduled for2025.
There is no evidence that inflation is dropping and another rate hike may happen. Odds for a rate drop this year appear low.
If you want a lower rate and less total interest payments, consider a 15 year loan vs 30 year when refinancing.
Concur a rate reduction is VERY unlikley this year and even talks about a possible rate increase isn't off the table. It will be a few years until you see rates likely in the 5%'s again and wouldnt really bother unless that was the case due to costs associated with it for a half point or whatever it might be lower would have to at leats be a point to even consider for me personally and likely more. The market is what it is right now and you all knew that buying the house. As mentioned the only way to get it slightly lower is doing a 15 year loan as mentioned. Upper 7's you got seems a bit high as well should of been lower 7's I would of thought. Enjoy you new place and pray for better financial situations sooner than later with regards to rates.
Thanks folks!
The good news is I'll be comfortable from a financial perspective for the duration of the current mortgage; I can wait until the rates get down to a point where it makes sense to refinance. Regarding a 15 year mortgage simply for the sake of a lower rate; both of the mortgage brokers I've worked with recommended against that as I would be refinancing within the next few years anyway, so what's the point?
Regarding future rate drops, yeah, I agree, even if they go down this year, I doubt they'll go down enough to justify a refinance. I'm just kind of annoyed at the timing of everything; had Maryland approved the mortgage company my son works for in time, they told me they were ready to give me a mortgage at 6.75%, that would have been nice, but to get this property, I had to move fast.
@Horseshoez wrote:I'm just kind of annoyed at the timing of everything; had Maryland approved the mortgage company my son works for in time, they told me they were ready to give me a mortgage at 6.75%, that would have been nice, but to get this property, I had to move fast.
Mortgage rates have been on the rise for the last 4-5 months (and especially in the last 3 weeks). They hit a decades high in late October 2023, in the following 6 weeks they dropped by about 1.500%, stayed there for about a month, then since the beginning of February they've increased by about 1%.