Asked by Stephen  |  Submitted August 17, 2015

My mortgage has a current rate of 4.95% How can I shave off 2% ?

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  Answers  |  2

August 18, 2015

A 2% reduction in interest rates from 4.95% would be just under 3%. Your options to obtain that rate would be an adjustable rate loan, or a fixed rate loan with a term of either 10 or 15 years. The questions that you need to consider are whether a rate that can/probably will go up after 5 years suits your needs, and whether you'd be comfortable with the considerably higher payments required for a shorter term loan. Hope that helps, if you have more questions, I'd be glad to answer them. Ted

$commenter.renderDisplayableName() | 10.01.20 @ 14:19


April 22, 2016

As per the answer above, yes, the 2.95% rate is feasible. But why do you have it in mind that a 2% reduction is the goal? What is your goal? If you stick to "2.95 or bust" you could miss out on more sensible options.

$commenter.renderDisplayableName() | 10.01.20 @ 14:19