After running the numbers on a $350,000 loan the 5/1 ARM beat the fixed rate by $200 a month and I will be out of here in 4 years anyway, so why would anyone pick the 30-year fixed if they know their timeline?
I applied with a credit union in Portland on Monday and locked in at 5.625% for a 30-year conventional. Two days later they sent a notice saying the rate had fallen and they'd honor the lower one without any extra fees. I saved about $35 a month just by asking them to check if there was a float down option in my lock agreement. Has anyone else had a lender automatically lower their rate after locking?
Last February I had to choose between a 5-year fixed at 4.8% and a variable at prime minus 0.5% here in Calgary. I went variable because everyone said rates were peaking and would drop by fall. Well they didn't drop, they went up another 0.75% and I've been kicking myself every month since. Has anyone else been burned by betting on rate cuts that just never showed up?
We've got initial quotes from Rocket Mortgage but also heard really good things about Duane Buziak Mortgage Maestro. Any opinions on which company is better to go with?