"DSK" wrote in message
.. .
NOYB wrote:
Where's "around here"? Here's a look at the rates in the top 10
markets:

http://www.bankrate.com/brm/news/mtg...p?prodtype=mtg

Interesting. Thanks for the link. Please note that the only rates quoted
with zero points were 1-year ARMs (a sucker bet IMHO), if John H's
daughter got a 15 year mortgage then she's doing just OK, if a 30 (the
way to go IMHO based on historical interest rates) then she's getting
ripped off.


Not really. The average 30 year fixed rate in most of the east coast
markets is over 6.3%...which is what John H said his daughter was getting.
Plus, that 6.3% is with points.


BTW none of those places are near me... or for that matter, none of them
are in Florida which I'd assume to be a major market...

The national index average is 6.34%. I doubt any specific market would
deviate much from that.

I just closed on a house 6 weeks ago with a 4.25% 5/1 ARM. 95% LTV.
"Interest-only" payment option, jumbo loan. 80% first mortgage. 15% second.
The second is indexed to prime plus 1/4.

I would have locked a 30-year fixed, but I couldn't afford a fully amortized
(interest and principle) 30 year fixed loan at this point in my life. In 5
years, my practice is paid off and I can afford to pay the principle. At
that point, I can either refinance the loan, or let it adjust to the new
rate.

Paying "interest only" is not a great idea unless: 1) housing is
appreciating very rapidly, and 2) your income will be significantly higher
in the near future...at which time you can pay a fully amortized payment
which includes principle.