There are positives to the economic mess. With the
government announcing that it intended to drive mortgage rates down by buying up to a half-trillion dollars' worth of mortgage-backed securities, rates have been dropping. My mother, who works for
a major mortgage company said it would be a good idea to check on refinancing. I called up the broker, then mom worked some magic, and as of tomorrow morning my rate will be locked at 5% for 60 days. We knew we wanted to refinance out of my 80/20 interest only loan, but we were hoping to wait until the house was more complete. With rates dropping and the ability to get a 60 day lock, we figured it was time to pull the trigger.
After we get back from vacation it will be a challenge to finish up the house before the appraisal. We figure we have about 45 days from tomorrow to fix things. We are going with an FHA loan, which will allow us to cash out up to 95% of the value of the home. To make sure we have the best opportunity to get money back we want the highest appraisal possible. There
is discussion about rates going to 4.5%, but figured we didn't want to get greedy. Hopefully we made the right choice, but time will tell if we could have saved even more.
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