“Credit unions usually don't have the most competitive rates. It's up to you to decide if it's worthwhile to trade 0.25% (sometimes 0.375%) for a non-local lender. If proximity of lender is an issue, there are some lenders (e.g. Mutual of Omaha) having local loan officers in certain locales. I wish I knew about this when I was looking, as I could have worked with someone local to me as opposed to someone in Missouri and still obtained the same rate.
And there are various "inversions" that happen with rates. Sometimes at the same lender, the 20-yr has a lower rate than the 15-yr, etc, and a credit union local to me has 6.25% on 20-yr but 6.375% on 15-yr. We are now in the middle of underwriting, and this particular lender's 30-yr rate is the lowest amongst all of its offerings. If you are shopping rates, compare all duration offerings across all lenders.
Last note is that paying down a 15-yr note in 5 years looks highly ambitious, as it would be ~$6700/month. Property tax + insurance probably totals ~$750/month. That's $7,450/month before we get to anything else (the $700/month loan repayment, groceries, utilities, child care, etc).“
Thank you. We will look harder at rates from institutions other than credit unions. Also, the best 20 year rate locally is lower than the best 15 year rate. If that continues at the end of our search then we’ll go that direction.
And there are various "inversions" that happen with rates. Sometimes at the same lender, the 20-yr has a lower rate than the 15-yr, etc, and a credit union local to me has 6.25% on 20-yr but 6.375% on 15-yr. We are now in the middle of underwriting, and this particular lender's 30-yr rate is the lowest amongst all of its offerings. If you are shopping rates, compare all duration offerings across all lenders.
Last note is that paying down a 15-yr note in 5 years looks highly ambitious, as it would be ~$6700/month. Property tax + insurance probably totals ~$750/month. That's $7,450/month before we get to anything else (the $700/month loan repayment, groceries, utilities, child care, etc).“
Thank you. We will look harder at rates from institutions other than credit unions. Also, the best 20 year rate locally is lower than the best 15 year rate. If that continues at the end of our search then we’ll go that direction.
Statistics: Posted by HarleeGirl — Sun May 19, 2024 7:49 pm