M’hijito and I seem to have lost our chance to refinance at a lower rate—at least for the time being. We trotted over to the credit union when we saw fixed rates on 30/15 mortgages had dropped to 5.25%. That translates to a savings of about $300 a month on our existing loans; it consolidates two loans into one, and it eliminates PMI (since, believe it or not, the credit union claims the value of the Investment House has gone up since we bought it last year).

However, by the time we got the paperwork in the mail, the rates had ticked back up to 5.75%: not worth ponying up several thousand dollars in fees.

The loan officer at the credit union, though she says she’s reluctant to prognosticate, thinks rates may drop. Over at Johnson Bank, an investment bank that brokers mortgages, the manager with whom I do business says he’s pretty confident rates will go back own in the next three to six months. He goes so far as to predict they may reach the 4% range.

Well, I’ll believe that when I see it.

Meanwhile, we’re qualified for the next three months. If in fact the rates sink back to 5.25%, we’ll grab a new loan.

debt, personal finance