Please help me pick a refi option
Hi all, first time poster here.
I am in the process of refi-ing my primary residence. I've got the following options for refinance:
All are conventional loans:
30 or 25 yr @ 3.875 - closing cost: 2600
20 @ 3.625 - closing cost: 2250
15 @ 3.0 - closing cost: 2300
I have already had a few comments from lenders saying the above rates are unreal. They are real and there is no buy down involved. I wouldn't waste my time posting if they were not. Now that I have that out of the way....
The 15 year payment is about $30 more than what I am paying in my current 30 year, which is not a problem for me to pay. If I take the 25 or 30 my plan is to pay it like a 15 year loan regardless.
Although this is my primary residence currently my long term plan is to hold the property when I am ready or need to move and use it as a rental property. I've run the amortization charts on all these so I have reviewed how the #s work out but I'm not sure what the right strategy is here given my plan.
My instinct is to take the lowest rate but at the same time it feels like I should consider one of the longer terms to allow flexibility in the payment, in the case that I elect to mortgage another property to live in.
I'm also struggling with the 'what ifs' e.g. "what if it turns out a I don't like being a landlord?"
The 3.0 looks so juicy but I wanted to get some feedback from some knowledgeable folks to make sure I'm thinking about the right decision criteria. I also want to ensure I'm not making decisions based on emotion.
I've already locked these rates so I need to make a decision on this within the next couple days. I really appreciate any thoughts you can share.
Cheers. 