Thoughts About Our Mortgage
When we purchased our current home about 18-months ago, we were thrilled to get our mortgage at 6.5% interest. We've been noticing that the interest rates have been fluctuating a lot recently, and we've silently been hoping for a major drop in the interest rates. It hasn't happened yet.
Our initial plan, provided that the interest rates do drop, was to lower our mortgage payment. We're thinking now, that a cash-out option might be a good idea because we would really like to finish a portion (if not all) of our basement.
I was recently talking to a friend who deals with Mortgages on a daily basis, and she suggested that we consider getting a 15-year fixed loan. This was before we were considering the cash-out option. She thought she would be able to get us a 4.5% interest rate. It was very tempting. Unfortunately, while a 15-year mortgage would be wonderful, the monthly payment is about $280 more than we can afford a month. Not a good choice.
Ideally, the interest rates will take a dive (come on 4.5%!), and we will be able to do another FHA-Streamline Refinance, and possibly even get some cash-out so that we can finish our basement. If not, the lower interest rate would be REALLY nice.
The nice thing about mortgages is that there are a lot of choices available. Of course, your financial situation may severely limit you in your choices, but the choices ARE there.
What kind of mortgage is right for you?