RISP
Recycles dryer sheets
- Joined
- Jul 18, 2012
- Messages
- 419
Hi everyone,
I'm in the process of refinancing our home mortgage and could use some advice. 4.5 years ago I went with a 5-year-fixed mortgage, which turned out to be the right choice over the 10-year-fixed. Signore Draghi has been suppressing rates all over Europe so much that I can get an even better rate now.
So the choice is between a 5-year-fixed at 0.99% vs. a 10-year-fixed at 1.41%. Both rates are crazy low, so there's no right-or-wrong here I suppose. I thought I might just go with the 10-year one, pay it off in full during that time, and forget about debt forever. However, the gap between the two rates is bigger than I expected, so maybe I should take the 5-year one and pay (slightly) less interest and more against principal, then re-assess in 2022?
Any thoughts are welcome. Of course nobody knows how interest rates will look like 5 years from now, but can it be less than 1.41%? OTOH, I said the same thing in late 2012, and they did come down even further...
I'm in the process of refinancing our home mortgage and could use some advice. 4.5 years ago I went with a 5-year-fixed mortgage, which turned out to be the right choice over the 10-year-fixed. Signore Draghi has been suppressing rates all over Europe so much that I can get an even better rate now.
So the choice is between a 5-year-fixed at 0.99% vs. a 10-year-fixed at 1.41%. Both rates are crazy low, so there's no right-or-wrong here I suppose. I thought I might just go with the 10-year one, pay it off in full during that time, and forget about debt forever. However, the gap between the two rates is bigger than I expected, so maybe I should take the 5-year one and pay (slightly) less interest and more against principal, then re-assess in 2022?
Any thoughts are welcome. Of course nobody knows how interest rates will look like 5 years from now, but can it be less than 1.41%? OTOH, I said the same thing in late 2012, and they did come down even further...