Mortgage Blog

I am in LA this weekend, just want to spend a few hours with my daughter. Though she is working on her project, and I am writing blogs, I feel very about the trip and the valuable time with her. 

I am already financially free a few years back, but I still love my job and plan to help my clients to get a good rate and share my experience with my friends. Once my friend asked when I would retire, I told him that I would like to work till age of 76, and run marathons till 76 years old. I do not know how I get the number 76, it might be because I want to run marathon for 25 more years and work 25 more years. And I am a workaholic. I love to work, and enjoy the happiness the work brings to me everyday. 

A few years ago, I wrote on my blog about the interest rate. It is important, but it is not that important. And there are a lot of things more important than the interest rates. 

First, for the interest rates, you do not know whether you make a best decision. You will only know it a few years later. For example, 5 years ago, you got a 5/1 arm rate at 2.25%(3.25% for 30 yr fixed), then 5 years later, if you want to refi, you will get around 4%. Was it a good decision? We do not know. 

For some of my clients, it was. They enjoyed the low rates, and they paid off the loan. For some others, the refinance of 4% was not bad, the average rate of the past 10 years still below 3.25%. For others, they regretted not getting the rate fixed, but it was not bad either. 

But one thing we talked about was the interest rate. A lot of them did not remember what kind of rates they got , and how many years the rate fixed. In another word, the rate might be only “important” at the refinance time. Same for the purchase. If the current property value is 2miion, do you mind if you purchased the property at 750k or 800k? I do not if I were the owner. 

Stay tuned.