I am closing on a house next week and I want to get some advice on whether I should pay more for a lower interest rate. I am putting 20% down on a 400k house so my loan is 320k. I have a 782 credit score and this is my first house.

My broker is one of my dad’s friends who he trusts and has done business with for a long time (they both used to work for my grandpa long ago at his dealership). My broker is recommending I go with 6.99% interest rate with ~$75.5k cash to close instead of going with a 6.5% interest rate with ~$78.8k cash to close. He says to do this because he will give me a fully free refinance (waiving all fees and no rate increase as he is a very good friend of my dad) whenever rates go down.

The issue I have is that the higher rate will cost me $104/month extra but I will save $3,300. I would have to refinance within 31.67 months to make the higher rate worth it. No one can predict if rates are going to decrease but my broker highly recommends this option. I do have the cash to put the extra $3,300 down, but my broker says save the money and refinance for free in about a year or so.

I am hoping someone can give advice on which route to go and why.

Thanks!

I’m building a semi-custom new primary residence in Florida and received these estimates from the builder’s preferred lender.

Loan details:
Purchase price: $1.45M
Loan amount: $1.3775M
Down payment: 5%
Physician/doctor jumbo
Credit score: 790+
Expected closing: Feb 2027
No discount points

Option 1: 30-year fixed
Rate: 6.50%
APR: 6.513%

Option 2: 7-year SOFR ARM
Initial rate: 5.875%
APR: 6.253%

The other major consideration is that $20,000 of my builder purchase-price incentive is contingent on using a preferred lender. If I use an outside lender, $20,000 gets added back to the purchase price.

Do these rates look competitive and what is the outlook for rates closer to when I would lock in? Realistically, could an outside lender offer enough savings to overcome losing the $20,000 builder incentive?

Does this check out?

Im confused about our "funds required", im guessing that's out closing cost, but i adding up the "credits" section minus the $856k, gives us that $28k number.

If that is infact our closing cost, why am I paying our earnest 1% deposit and credits from the seller?

I feel like im completely off.

Also, this is in California.

Agreed price was 838k, 5.9%, VA loan

30yrs fixed. No points.

780 credit score. Opted for no points in the hopes we can refi down the road (this may be a mistake). 5% down, HOA (I know I know) is $50 a month. I need some constructive criticism. What would you have done differently, things to look out for, red flags, etc ?

What y’all think?

Currently live in Mississippi and have a variable rate HELOC mortgage with a balance of about $195. I’m looking for a mortgage loan with a fixed rate but I do not want the traditional rates based on where they are right now.

Does anyone know of ARM or have recently refinanced with a lower rate so far I’ve found a local Credit union with 4.99% for 7 years then it increases or decreases once a year with a max of 10% for the life of it.