Posted on: 18th Feb, 2009 09:28 am
I am considering re-financing my currnent mortgage (15 years @ 5.4) to a 10 year fixed. I was shocked to find that at my local bank the 15 year rate is 4.5 and the 10 year rate is 5.125. Does this make any sense? Why would anyone take out a 10 year at the higher rate. Could I take out a 15 year and simply add a few dollars every month to shorten it 10 years?
Yes you could essentially do that. However I think there is an error in their rate quote. Call them back to verify. I am seeing 10yr fixed rates much lower than that.