February 10th, 2011 10:17 AM by Eric Fang
Q:Currently my 30 years loan rate is 4.75%. I wouldlike 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 betterfor 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 goodoption.