I just locked in a fixed mortgage rate at 6.125, is this good?
Written By: admin on December 13, 2009
One Comment
Im buying my first home and I locked in the rate today of 6.125 on a 30yr fixed mortgage, was this a excellent rate? I don’t plot to sell it for a long time. It sounded excellent, but I don’t know much about this type of thing.
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Tags: fixed mortgage, fixed rates mortgage, long timeTags: fixed mortgage, long time
not a terrible rate. consider buying the rate down if you dont plot to refinance and stay in the home for a long time this small amount you will pay wil save you a boat loan of money.
pay 1.5% to buy the rate down. .75% it will give you a rate of 5.40
200,000 with the rate bought down to 5.40
200000X.0750=1500 per year
1500 X 30 years = $45,000 this is the added interest you save by buying the rate down and you well know interest is payed up front so the first 10 years you pay mostly interest.
if you took what it is saving you 125.00 per month and sent an additional check of 125 marked apply to principle your mortgage would be paid off in 24 years and
Date (#Months) Payment Towards Principal Towards Interest Remaining Amount
Year 1 2007-09 (#001) $1,248.06 $348.06 $900.00 ($900.00) $199,651.94
Year 5 2011-09 (#049) $1,248.06 $431.77 $816.29 ($42,121.22) $180,966.28
Year 10 2016-09 (#109) $1,248.06 $565.26 $682.80 ($87,206.78) $151,168.24
Year 15 2021-09 (#169) $1,248.06 $740.02 $508.04 ($123,079.69) $112,157.55
Year 20 2026-09 (#229) $1,248.06 $968.81 $279.25 ($146,891.53) $61,085.79
Year 24 2030-09 (#277) $1,248.06 $1,201.82 $46.24 ($154,787.41) $9,074.79
2031-05 (#285) $511.58 $509.29 $2.29 ($154,960.62) $0.00