Mortgage Refi?

[brooke77]

I know a lot of people on this board are locked into low rates, but for those who purchased in the last year or so —— are you refinancing? We have a 6.9% mortgage and got a quote for a 5.875% re-fi. It feels like a no-brainer, but DH is thinking rates will drop lower. Thoughts??

[orval]

We are in the same boat. Same question do it now or wait. They say they will probably drop lower. But who knows for sure.

[plutosmoon]

I'm waiting a bit, I think we have a few more rate drops coming.

I have 6.5% and I'm about a year into my 15/1 arm. A lower payment and rate would be nice, but with refi costs I'd like to see a low 5 rate before I jump.

[Susie]

We bought our first house at 6.125% and held out for 4.375% a couple years later.  We refi'ed again a few years later for a shorter term and 3.25%.  We had 3 different mortgages in the 13 years we owned that house.  My threshold for "worth doing" is 1% or more, but I'd guess rates may go down a little more.

You could also try shopping a little more if you're anxious to get it done.  My credit union is offering 5.75% today for 30 year fixed.

[whitemerlot]

I agree with Susie that 1% is a threshold to make me motivated to check into refinancing.

[sadlebred]

I'd wait til the EOY to see if the Fed will lower rates more. Consensus in financial circles is that they will.

[brooke77]

Thanks all! I think we will hold off and hope for another drop.

[heygrey]

I have been following both the Bank of Canada and the US Federal Reserve, because Canada tends to follow the US although this last rate cut came first in Canada. Everything I've read predicts another drop and potentially a sharp decline by summer 2025.

We have to renew our mortgages in Canada every five years (plus or minus a couple years depending on the loan you pick). H and I got an insanely good rate in 2020 and I've been dreading our renewal next fall because our mortgage payment is definitely going to increase by a not insignificant amount. It's still going up, but I'm less panicked about it given the current predictions.

If you're comfortable with your current payments, I would wait another 3-6 months then evaluate. 

[scm1011]

I would definitely wait a few more months. Rates will very likely drop more in the next 3-6 months.

[mae0111]

We purchased a second home last year and paid points at closing to get the rate under 7%. Rates for 2nd homes still aren't awesome (still over 6 for a 30 yr fixed), so we're going to wait. As mentioned above, they're likely to drop again this year.

Our primary home mortgage is at 2.75%. We're never touching that!

[Nugget T. Brain, The OG]

I will forever be livid that my XH's chucklefuckery meant I missed the opportunity to refi at 2 fucking percent. I ended up at 3.75 which is still good but it's just another reason I detest his ass.

[brooke77]

Update - my mortgage broker just reached out and rates have already dropped. I’m going to keep holding off a bit.

[lessel]

I'm watching and waiting a bit too. We're at 6.375 on a 30y because we moved in summer 2023. It was painful to give up a 1.99 on a 15y and I still mourn that financial decision, but life happens.