Mortgage Blog

Q:Currently my 30 years loan rate is 4.75%. I would
like to refinance to get 15 years loan instead.
Do you think it is good to do now or I should wait?
Loan maount 400k, loan 320k

A:Basically, there are not much benefits of doing
it. 4.75% of 30 yr fixed is the same as 4.25% of
15 yr fixed rate. Though I can do 4.125% for 15
yr fixed for you, I don't think it is worth it
unless you want to payoff faster.

So the question now is: how you are planning to
do with this property? Do you want to keep it
for a long time or are you going to move up?

If you plan to move up in the future, what's your
plan for this house?

If you  decide to keep, then I would recommend
stay with the current 30 yr fixed;It will be better
for future cash-flow when you rent it out.
And it's easier for you to qualify more loans.

If you want to payoff faster, or you will sell
when you move up, then you can choose this
15 yr fixed.

And for most of my clients, 30 yr fixed is a good
option.